As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the media industry, including Warner Music Group (NASDAQ: WMG) and its peers.
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 7 media stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1%.
In light of this news, share prices of the companies have held steady as they are up 4.7% 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 $1.69 billion, up 8.7% year on year. This print exceeded analysts’ expectations by 6.2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
“This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth, and market share gains…all of which show our strategy is working,” said Robert Kyncl, CEO, Warner Music Group.
Warner Music Group achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 12.3% since reporting and currently trades at $33.73.
Is now the time to buy Warner Music Group? Access our full analysis of the earnings results here, it’s free.
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 $380 million, down 2.8% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with a beat of analysts’ EPS and adjusted operating income estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.3% since reporting. It currently trades at $3.49.
Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free.
Slowest 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 $508.3 million, up 7% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly.
Interestingly, the stock is up 18.7% since the results and currently trades at $25.57.
Read our full analysis of Scholastic’s results here.
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 $685.9 million, up 9.7% year on year. This result topped analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
The New York Times achieved the fastest revenue growth among its peers. The stock is up 11.1% since reporting and currently trades at $59.56.
Read our full, actionable report on The New York Times 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 $9.81 billion, up 1% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
The stock is down 5.9% since reporting and currently trades at $12.05.
Read our full, actionable report on Warner Bros. Discovery here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
