Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Warner Bros. Discovery (NASDAQ:WBD) and the best and worst performers in the media industry.
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 8 media stocks we track reported a weaker Q2. As a group, revenues missed analysts’ consensus estimates by 2.7%.
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, media stocks have held steady amidst all this with share prices up 2.2% on average since the latest earnings results.
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 $9.71 billion, down 6.2% year on year. This print fell short of analysts’ expectations by 3.6%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings and Advertising revenue estimates.
Unsurprisingly, the stock is down 10% since reporting and currently trades at $6.95.
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Best Q2: fuboTV (NYSE:FUBO) Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
fuboTV reported revenues of $391 million, up 25% year on year, outperforming analysts’ expectations by 6.2%. It was a strong quarter for the company with a decent beat of analysts’ earnings estimates.
fuboTV scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.7% since reporting. It currently trades at $1.28.
Weakest Q2: 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 $474.9 million, down 10.1% year on year, falling short of analysts’ expectations by 14%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Scholastic posted the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 16.1% since the results and currently trades at $30.69.
Disney (NYSE:DIS) Founded by brothers Walt and Roy, Disney (NYSE:DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Disney reported revenues of $23.16 billion, up 3.7% year on year, in line with analysts’ expectations. Zooming out, it was a good quarter for the company with a solid beat of analysts’ earnings estimates.
The stock is down 3.8% since reporting and currently trades at $86.55.
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 $2.58 billion, up 5.9% year on year, surpassing analysts’ expectations by 3%. More broadly, it was a solid quarter for the company with a narrow beat of analysts’ earnings and Book Publishing revenue estimates.
The stock is up 3% since reporting and currently trades at $27.58.
This content was originally published on Stock Story
