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Spotting Winners: TEGNA (NYSE:TGNA) And Broadcasting Stocks In Q3

By: StockStory

December 03, 2024 at 03:04 AM EST

TGNA 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 TEGNA (NYSE: TGNA).

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 9.5% 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.

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 exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations.

“I am thrilled to join TEGNA at this pivotal moment for the Company and for local journalism,” said Mike Steib, CEO.

Interestingly, the stock is up 4.7% since reporting and currently trades at $18.77.

Is now the time to buy TEGNA? 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 a solid beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 15.7% since reporting. It currently trades at $9.67.

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.

As expected, the stock is down 24.5% since the results and currently trades at $4.37.

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 print missed analysts’ expectations by 3.4%. More broadly, it was actually a very strong quarter as it recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Paramount had the weakest performance against analyst estimates among its peers. The stock is down 5.1% since reporting and currently trades at $10.96.

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

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 number beat analysts’ expectations by 5.7%. Overall, it was a stunning quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.

FOX achieved the biggest analyst estimates beat among its peers. The stock is up 11.7% since reporting and currently trades at $46.73.

Read our full, actionable report on FOX 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 US 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. Said differently, there's still much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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