Looking back on broadcasting stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including AMC Networks (NASDAQ: AMCX) 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 7 broadcasting stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 0.6% below.
Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.
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 $555.2 million, down 6.9% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ Affiliate revenue estimates.
Chief Executive Officer Kristin Dolan said: "We continue to execute on our core strengths as we navigate the changing world of media. During the first quarter we delivered high-quality premium programming to our audiences, launched ad-supported AMC+ on Charter and generated $94 million of free cash flow.(1) We remain nimble and opportunistic in broadly distributing our sought-after content across all available platforms to build value for our partners, viewers and shareholders."
AMC Networks delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is up 6.5% since reporting and currently trades at $6.59.
Read our full report on AMC Networks here, it’s free.
Best Q1: 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 $4.37 billion, up 26.8% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
FOX achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $53.82.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $807.1 million, up 1% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Interestingly, the stock is up 26.8% since the results and currently trades at $1.61.
Read our full analysis of iHeartMedia’s results here.
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 $782 million, down 5% year on year. This result beat analysts’ expectations by 1.1%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 6.9% since reporting and currently trades at $3.97.
Read our full, actionable report on Gray Television here, it’s free.
E.W. Scripps (NASDAQ: SSP)
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
E.W. Scripps reported revenues of $524.4 million, down 6.6% year on year. This print topped analysts’ expectations by 0.7%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is up 1.7% since reporting and currently trades at $2.62.
Read our full, actionable report on E.W. Scripps here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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.
