Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at E.W. Scripps (NASDAQ:SSP) 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 slower 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 share prices up 2.7% on average since the latest earnings results.
Weakest Q2: E.W. Scripps (NASDAQ:SSP) Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ:SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
E.W. Scripps reported revenues of $573.6 million, down 1.6% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a weak quarter for the company with a miss of analysts’ Local Media revenue estimates.
"Election spending remains robust for the U.S. Senate races in Montana and Ohio, and at least four states where we have stations have placed reproductive rights issues on their November ballots. We are beginning to see additional upside from Vice President Kamala Harris's entry into the presidential race. Overall, this year's political ad revenue performance for broadcast television is a testament to our durability as a brand-safe platform for political candidates and campaigns.
Unsurprisingly, the stock is down 27.6% since reporting and currently trades at $2.15.
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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.
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%. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts’ earnings estimates.
Paramount had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 6.1% since reporting and currently trades at $10.83.
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.
This content was originally published on Stock Story
