Why Sinclair Broadcast (SBGI) Is Down Today

NEW YORK (TheStreet) -- Sinclair Broadcast (SBGI) was falling 5.4% to $26.35 following a quarterly earnings report that missed earnings estimates.

In its fourth-quarter earnings report the broadcast company posted earnings of 29 cents a share, missing Capital IQ Consensus Estimate of 34 cents a share by 5 cents. Revenue rose 29.8% in the quarter to $27.7 million, beating analyst estimates of $409.97 million.

Sinclair Broadcast said it generated $8.2 million in incremental revenue from the Super Bowl airing on Fox (FOXA). The company expects to see an additional $3.6 million in revenue from the Olympics as the event is airing on NBC (CMCSA).

Must read: How NBC Put the Olympics Everywhere

TheStreet Ratings team rates SINCLAIR BROADCAST GP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SINCLAIR BROADCAST GP (SBGI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, good cash flow from operations, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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