Let's dig into the relative performance of AMC Networks (NASDAQ:AMCX) and its peers as we unravel the now-completed Q1 broadcasting earnings season.
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 decent Q1; on average, revenues missed analyst consensus estimates by 0.6%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and broadcasting stocks have had a rough stretch, with share prices down 6.7% on average since the previous earnings results.
Slowest Q1: AMC Networks (NASDAQ:AMCX) Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.
AMC Networks reported revenues of $596.5 million, down 16.9% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts'revenue and earnings estimates.
Chief Executive Officer Kristin Dolan said: "In the first quarter, we continued to execute on our strategic priorities, including the ongoing delivery of healthy free cash flow. As new technologies transform the way media is consumed, we continue to produce great content and make it available to viewers whenever and wherever they want to watch. We recently strengthened our balance sheet by completing a series of financing transactions that meaningfully extended our debt maturities. This creates substantial flexibility for us as we continue to leverage our core strengths and reorient our business around the consumer-driven changes that are happening across the industry."
AMC Networks delivered the slowest revenue growth of the whole group. The stock is down 24.3% since reporting and currently trades at $10.40.
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Best Q1: Nexstar Media (NASDAQ:NXST) Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.
Nexstar Media reported revenues of $1.28 billion, up 2.1% year on year, in line with analysts' expectations. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Core Advertising revenue estimates.
The market seems happy with the results as the stock is up 7.2% since reporting. It currently trades at $179.88.
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 $823 million, up 2.7% year on year, in line with analysts' expectations. It was a decent quarter for the company with an impressive beat of analysts' earnings estimates but revenue guidance for next quarter missing analysts' expectations.
As expected, the stock is down 23.1% since the results and currently trades at $5.12.
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 $7.69 billion, up 5.8% year on year, in line with analysts' expectations. Taking a step back, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is down 9.9% since reporting and currently trades at $11.03.
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 $3.45 billion, down 15.6% year on year, in line with analysts' expectations. Overall, it was a mixed quarter for the company with a decent beat of analysts' earnings estimates but a miss of analysts' Affiliate revenue estimates.
FOX scored the biggest analyst estimates beat among its peers. The stock is up 16.9% since reporting and currently trades at $37.77.
This content was originally published on Stock Story
