As the Q2 earnings season wraps, let's dig into this quarter's best and worst performers in the broadcasting industry, including iHeartMedia (NASDAQ:IHRT) 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 weaker 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, and broadcasting stocks have had a rough stretch. On average, share prices are down 9.1% since the latest earnings results.
Best Q2: iHeartMedia (NASDAQ:IHRT) Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ:IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.
iHeartMedia reported revenues of $929.1 million, flat year on year. This print exceeded analysts' expectations by 1.4%. Despite the top-line beat, it was still a weak quarter for the company with a miss of analysts' earnings estimates.
“Our second quarter results mark the first quarter that our consolidated revenues increased year-over-year since Q4 2022. We continue to see strong momentum in our podcast business, our Digital ex. Podcast business, and have seen sequential improvement of our Multiplatform Group’s year-over-year revenue performance,” said Bob Pittman, Chairman and CEO of iHeartMedia,
Unsurprisingly, the stock is down 12.5% since reporting and currently trades at $1.26.
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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, falling short of analysts' expectations by 1%. It performed better than its peers, but it was unfortunately a weak quarter for the company with a miss of analysts' earnings estimates and a miss of analysts' Core Advertising revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.3% since reporting. It currently trades at $154.25.
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, exceeding analysts' expectations by 4.1%. It was a weaker quarter for the company with a miss of analysts' earnings estimates and a miss of analysts' Advertising revenue estimates.
As expected, the stock is down 10.3% since the results and currently trades at $9.26.
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. Overall, it was a good quarter for the company with a decent beat of analysts' earnings estimates.
The stock is up 6.7% since reporting and currently trades at $38.80.
TEGNA (NYSE:TGNA) Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
TEGNA reported revenues of $710.4 million, down 2.9% year on year, in line with analysts' expectations. More broadly, it was a slower quarter for the company with a miss of analysts' Subscription revenue and earnings estimates.
The stock is down 7.2% since reporting and currently trades at $13.47.
This content was originally published on Stock Story
