As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the broadcasting industry, including FOX (NASDAQ:FOXA) 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 7 broadcasting stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 0.6% below.
While some broadcasting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.
Best Q1: 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 $4.37 billion, up 26.8% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
FOX achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 8.6% since reporting and currently trades at $54.60.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Gray Television (NYSE:GTN)
Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Gray Television reported revenues of $782 million, down 5% year on year, outperforming analysts’ expectations by 1.1%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems content with the results as the stock is up 2.3% since reporting. It currently trades at $3.80.
Is now the time to buy Gray Television? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $807.1 million, up 1% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
As expected, the stock is down 3.1% since the results and currently trades at $1.23.
Read our full analysis of iHeartMedia’s results here.
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 $555.2 million, down 6.9% year on year. This number came in 2.6% below analysts' expectations. Overall, it was a slower quarter as it also logged a significant miss of analysts’ EPS estimates and a miss of analysts’ Affiliate revenue estimates.
AMC Networks had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 1.3% since reporting and currently trades at $6.11.
Read our full, actionable report on AMC Networks here, it’s free.
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 $680 million, down 4.8% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates but a miss of analysts’ Subscription revenue estimates.
The stock is flat since reporting and currently trades at $16.64.
Read our full, actionable report on TEGNA here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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