Let’s dig into the relative performance of Nexstar Media (NASDAQ:NXST) and its peers as we unravel the now-completed Q2 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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, broadcasting stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Weakest Q2: 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 $1.27 billion, up 2.3% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
IRVING, Texas--(BUSINESS WIRE)--Nexstar Media Group, Inc. (NASDAQ: NXST) (“Nexstar” or the “Company”) today reported financial results for the second quarter ended June 30, 2024 as summarized below.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $170.77.
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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 decent quarter for the company with an impressive beat of analysts’ earnings estimates.
Sinclair achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $14.01.
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 estimates.
As expected, the stock is down 1.1% since the results and currently trades at $5.21.
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, in line with analysts’ expectations. Revenue aside, it was a solid quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is up 13% since reporting and currently trades at $41.08.
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 $625.9 million, down 7.8% year on year, surpassing analysts’ expectations by 4.1%. Taking a step back, it was a mixed quarter for the company with a miss of analysts’ earnings estimates.
AMC Networks achieved the biggest analyst estimates beat among its peers. The stock is up 1.1% since reporting and currently trades at $10.43.
This content was originally published on Stock Story
