The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how media stocks fared in Q2, starting with Warner Music Group (NASDAQ:WMG).
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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 2.7%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, media stocks have been resilient with share prices up 5.9% on average since the latest earnings results.
Warner Music Group (NASDAQ:WMG) Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ:WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.
Warner Music Group reported revenues of $1.55 billion, flat year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a slower quarter for the company with a miss of analysts' earnings estimates.
Interestingly, the stock is up 4.9% since reporting and currently trades at $29.52.
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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 very strong quarter for the company with an impressive beat of analysts’ revenue estimates.
fuboTV achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 54.4% since reporting. It currently trades at $2.03.
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 14.9% since the results and currently trades at $31.13.
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 decent quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ Sports revenue estimates.
The stock is flat since reporting and currently trades at $90.68.
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, in line with analysts’ expectations. Revenue aside, it was a good quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is up 5.7% since reporting and currently trades at $55.10.
This content was originally published on Stock Story
