Let’s dig into the relative performance of Warner Music Group (NASDAQ:WMG) and its peers as we unravel the now-completed Q3 media earnings season.
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 satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged 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 $1.63 billion, up 2.8% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates.
Unsurprisingly, the stock is down 4.9% since reporting and currently trades at $32.02.
Is now the time to buy Warner Music Group? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $386.2 million, up 20.3% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
fuboTV pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.6% since reporting. It currently trades at $1.52.
Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Endeavor (NYSE:EDR)
Owner of the UFC, WWE, and a client roster including Christian Bale, Endeavor (NYSE:EDR) is a diversified global entertainment, sports, and content company known for its talent representation and involvement in the entertainment industry.
Endeavor reported revenues of $2.03 billion, up 66.6% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Endeavor delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.6% since the results and currently trades at $30.92.
Read our full analysis of Endeavor’s results here.
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 $237.2 million, up 3.8% year on year. This number beat analysts’ expectations by 1.6%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is down 9.9% since reporting and currently trades at $27.22.
Read our full, actionable report on Scholastic here, it’s free.
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 $9.62 billion, down 3.6% year on year. This number came in 1.7% below analysts' expectations. In spite of that, it was a strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Warner Bros. Discovery had the slowest revenue growth among its peers. The stock is up 21.4% since reporting and currently trades at $10.14.
Read our full, actionable report on Warner Bros. Discovery here, it’s free.
Market Update
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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