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Broadcasting Stocks Q3 Results: Benchmarking Gray Television (NYSE:GTN)

By: StockStory

November 13, 2024 at 05:39 AM EST

GTN Cover Image

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the broadcasting industry, including Gray Television (NYSE: GTN) and its peers.

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.

While some broadcasting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.2% since the latest earnings results.

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. This print fell short of analysts’ expectations by 1.8%. Overall, it was a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.

Unsurprisingly, the stock is down 21.4% since reporting and currently trades at $4.55.

Read our full report on Gray Television 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’ earnings and EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $8.38.

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

iHeartMedia (NASDAQ: IHRT)

Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ: IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.

iHeartMedia reported revenues of $1.01 billion, up 5.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a miss of analysts’ earnings estimates.

Interestingly, the stock is up 35.1% since the results and currently trades at $2.35.

Read our full analysis of iHeartMedia’s results here.

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 print was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a miss of analysts’ earnings estimates.

Nexstar Media achieved the fastest revenue growth among its peers. The stock is down 9.8% since reporting and currently trades at $165.24.

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

TEGNA (NYSE: TGNA)

Spun out of Gannett in 2015, TEGNA (NYSE: TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.

TEGNA reported revenues of $806.8 million, up 13.1% year on year. This print beat analysts’ expectations by 1.4%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations.

The stock is up 5.5% since reporting and currently trades at $18.92.

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

Market Update

As expected, the Federal Reserve cut its policy rate by 25bps (a quarter of a percent) in November 2024 after Donald Trump triumphed in the US Presidential election. This marks the central bank's second easing of monetary policy after a large 50bps rate cut two months earlier. Going forward, the markets will debate whether these rate cuts (and more potential ones in 2025) are perfect timing to support the economy or a bit too late for a macro that has already cooled too much. Adding to the degree of difficulty is a new Republican administration that could make large changes to corporate taxes and prior efforts such as the Inflation Reduction Act.

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.

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