Looking back on broadcasting stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including FOX (NASDAQ:FOXA) and its peers.
Broadcasting companies have been facing secular headwinds in the form of consumers abandoning traditional television and radio in favor of streaming services. As a result, many broadcasting companies have evolved by forming distribution agreements with major streaming platforms so they can get in on part of the action, but will these subscription revenues be as high quality and high margin as their legacy revenues? Only time will tell which of these broadcasters will survive the sea changes of technological advancement and fragmenting consumer attention.
The 9 broadcasting stocks we track reported a weaker Q2. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, broadcasting stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
FOX (NASDAQ:FOXA) Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
FOX reported revenues of $3.09 billion, up 2% year on year. This print was in line with analysts’ expectations, and overall, it was a good quarter for the company with a decent beat of analysts’ earnings estimates.
Interestingly, the stock is up 7.2% since reporting and currently trades at $38.99.
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Best Q2: Sinclair (NASDAQ:SBGI) Founded in 1971, Sinclair (NASDAQ:SBGI) is an American media company operating numerous television stations and providing multi-platform broadcasting services.
Sinclair reported revenues of $829 million, up 7.9% year on year, falling short of analysts’ expectations by 1.1%. However, it was still a solid quarter for the company with an impressive beat of analysts’ earnings estimates and revenue guidance for next quarter beating analysts’ expectations.
Sinclair scored the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $12.97.
Weakest Q2: Gray Television (NYSE:GTN) Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Gray Television reported revenues of $826 million, up 1.6% year on year, falling short of analysts’ expectations by 1.7%. It was a weak quarter for the company with a miss of analysts’ earnings and revenue estimates.
As expected, the stock is down 14.8% since the results and currently trades at $4.49.
Paramount (NASDAQ:PARA) Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Paramount reported revenues of $6.81 billion, down 10.5% year on year, falling short of analysts’ expectations by 5.9%. Zooming out, it was a slower quarter for the company with a miss of analysts’ Direct-to-Consumer revenue estimates.
Paramount had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 7.8% since reporting and currently trades at $11.01.
TEGNA (NYSE:TGNA) Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
TEGNA reported revenues of $710.4 million, down 2.9% year on year, in line with analysts’ expectations. More broadly, it was a slower quarter for the company with a miss of analysts’ Subscription revenue and earnings estimates.
The stock is down 8.3% since reporting and currently trades at $13.30.
This content was originally published on Stock Story
