Unpacking Q3 Earnings: FOX (NASDAQ:FOXA) In The Context Of Other Broadcasting Stocks

November 22, 2024 at 03:36 AM EST

FOXA Cover Image

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 Q3. Today, we are looking at broadcasting stocks, starting with FOX (NASDAQ: FOXA).

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 9 broadcasting stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 10.1% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $3.56 billion, up 11.1% year on year. This print exceeded analysts’ expectations by 5.7%. 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 scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 11.4% since reporting and currently trades at $46.64.

Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.

Best Q3: 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 $599.6 million, down 5.9% year on year, outperforming analysts’ expectations by 2.1%. The business had a stunning quarter with an impressive beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 20.8% since reporting. It currently trades at $10.10.

Is now the time to buy AMC Networks? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: 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 $950 million, up 18.3% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EPS estimates.

As expected, the stock is down 24.2% since the results and currently trades at $4.39.

Read our full analysis of Gray Television’s results here.

Paramount (NASDAQ: PARA)

Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.

Paramount reported revenues of $6.73 billion, down 5.6% year on year. This result lagged analysts' expectations by 3.4%. Taking a step back, it was still a very strong quarter as it logged an impressive beat of analysts’ EPS and EBITDA estimates.

Paramount had the weakest performance against analyst estimates among its peers. The stock is down 4.2% since reporting and currently trades at $11.06.

Read our full, actionable report on Paramount here, it’s free.

Nexstar Media (NASDAQ: NXST)

Founded in 1996, Nexstar (NASDAQ: NXST) is an American media company operating numerous local television stations and digital media outlets across the country.

Nexstar Media reported revenues of $1.37 billion, up 20.7% year on year. This result met analysts’ expectations. However, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.

Nexstar Media achieved the fastest revenue growth among its peers. The stock is down 7.7% since reporting and currently trades at $169.12.

Read our full, actionable report on Nexstar Media 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.

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.

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