As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at media stocks, starting with Scholastic (NASDAQ:SCHL).
The advent of the internet changed how shows, films, music, and overall information flow. As a result, many media companies now face secular headwinds as attention shifts online. Some have made concerted efforts to adapt by introducing digital subscriptions, podcasts, and streaming platforms. Time will tell if their strategies succeed and which companies will emerge as the long-term winners.
The 9 media stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 0.8%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the media stocks have fared somewhat better than others, they collectively declined, with share prices falling 2% on average since the previous earnings results.
Scholastic (NASDAQ:SCHL) Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ:SCHL) is an international company specializing in children's publishing, education, and media services.
Scholastic reported revenues of $323.7 million, down 0.4% year on year, falling short of analysts' expectations by 1.7%. It was a weak quarter for the company: Its EPS missed and its revenue fell short of Wall Street's estimates, driven by weakness in its Book Clubs segment - revenue was down 52% year on year as the company ran fewer promotional offers.
The stock is down 6.8% since the results and currently trades at $35.31.
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Best Q1: The New York Times (NYSE:NYT) Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
The New York Times reported revenues of $594 million, up 5.9% year on year, in line with analysts' expectations. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 11.6% since the results and currently trades at $51.61.
Slowest Q1: Warner Bros. Discovery (NASDAQ:WBD) Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Warner Bros. Discovery reported revenues of $9.96 billion, down 6.9% year on year, falling short of analysts' expectations by 2.6%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
Warner Bros. Discovery had the weakest performance against analyst estimates in the group. The stock is down 8.7% since the results and currently trades at $7.11.
News Corp (NASDAQ:NWSA) Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
News Corp reported revenues of $2.42 billion, down 1% year on year, falling short of analysts' expectations by 1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
The stock is up 13.1% since the results and currently trades at $27.28.
John Wiley & Sons (NYSE:WLY) Established in 1807, John Wiley & Sons (NYSE:WLY) is a global leader in academic publishing, providing educational materials, scholarly research, and professional development resources.
John Wiley & Sons reported revenues of $468.5 million, down 11% year on year, surpassing analysts' expectations by 6.8%. It was a decent quarter for the company, with full-year revenue guidance beating analysts' expectations but a miss of analysts' earnings estimates.
John Wiley & Sons pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 22.5% since the results and currently trades at $44.7.
This content was originally published on Stock Story
