As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at traditional media & publishing stocks, starting with EchoStar (NASDAQ: SATS).
The sector faces structural headwinds from declining linear TV viewership, shifts in advertising spend toward digital platforms, and ongoing challenges in monetizing print and broadcast content. However, for companies that invest wisely, tailwinds can include AI, the power of which can result in more personalized content creation and more detailed audience analysis. These can create a flywheel of success where one feeds into the other. Still there are outstanding questions around AI-generated content oversight, and the regulatory framework around this could evolve in unseen ways over the next few years.
The 4 traditional media & publishing stocks we track reported a satisfactory Q4. As a group, revenues missed analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 0.7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.2% since the latest earnings results.
Best Q4: EchoStar (NASDAQ: SATS)
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
EchoStar reported revenues of $3.97 billion, down 4.7% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates.
"Overall, we made improvements in all of our lines of business and achieved our plan of ending the year delivering positive free cashflow," said Hamid Akhavan, CEO and president, EchoStar Corporation.
EchoStar achieved the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 21.1% since reporting and currently trades at $22.90.
Is now the time to buy EchoStar? Access our full analysis of the earnings results here, it’s free.
Wiley (NYSE: WLY)
With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE: WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.
Wiley reported revenues of $404.6 million, down 12.2% year on year, outperforming analysts’ expectations by 0.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
The market seems happy with the results as the stock is up 14.1% since reporting. It currently trades at $43.29.
Is now the time to buy Wiley? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: IMAX (NYSE: IMAX)
Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE: IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.
IMAX reported revenues of $92.67 million, up 7.7% year on year, falling short of analysts’ expectations by 11.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
IMAX delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22.4% since the results and currently trades at $21.15.
Read our full analysis of IMAX’s results here.
Sinclair (NASDAQ: SBGI)
With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ: SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.
Sinclair reported revenues of $1.00 billion, up 21.5% year on year. This number met analysts’ expectations. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EPS estimates.
Sinclair achieved the fastest revenue growth among its peers. The stock is down 3.4% since reporting and currently trades at $13.99.
Read our full, actionable report on Sinclair 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.
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