The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Disney (NYSE: DIS) and the rest of the media stocks fared in Q3.
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 Q3. As a group, revenues were in line with analysts’ consensus estimates.
Luckily, media stocks have performed well with share prices up 14.6% on average since the latest earnings results.
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 $22.57 billion, up 6.3% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ Entertainment revenue estimates.
“This was a pivotal and successful year for The Walt Disney Company, and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.
The stock is up 11% since reporting and currently trades at $113.94.
Is now the time to buy Disney? 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 2.7%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 138% since reporting. It currently trades at $4.14.
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 6.6%. 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 6.9% since the results and currently trades at $31.01.
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 $544.6 million, down 3.2% year on year. This print missed analysts’ expectations by 1.7%. It was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates and a slight miss of analysts’ EBITDA estimates.
The stock is down 19.8% since reporting and currently trades at $19.94.
Read our full, actionable report on Scholastic here, it’s free.
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 result beat analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ adjusted operating income and EPS estimates.
Warner Music Group pulled off the biggest analyst estimates beat among its peers. The stock is down 5.7% since reporting and currently trades at $31.75.
Read our full, actionable report on Warner Music Group here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
