Looking back on media stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including John Wiley & Sons (NYSE:WLY) and its peers.
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 mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
In light of this news, media stocks have held steady with share prices up 3.7% on average since the latest earnings results.
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 $403.8 million, down 10.5% year on year. This print exceeded analysts’ expectations by 4.2%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ earnings and EBITDA estimates.
“The Wiley leadership team and I are pleased with how we started the year, as measured by both our performance indicators and financial results ,” said Matthew Kissner, Wiley President and CEO.
John Wiley & Sons delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 3.7% since reporting and currently trades at $49.37.
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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%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.
fuboTV delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 22.4% since reporting. It currently trades at $1.61.
Weakest Q2: 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, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a miss of analysts’ operating margin estimates.
As expected, the stock is down 2.3% since the results and currently trades at $7.54.
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 $625.1 million, up 5.8% year on year. This print was in line with analysts’ expectations. It was a satisfactory quarter as it also recorded a decent beat of analysts’ earnings estimates.
The stock is up 5.6% since reporting and currently trades at $55.01.
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. This print beat analysts’ expectations by 3%. Overall, it was a satisfactory quarter as it also logged a decent beat of analysts’ operating margin estimates.
The stock is down 2.9% since reporting and currently trades at $25.99.
This content was originally published on Stock Story
