As the Q2 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 FOX (NASDAQ: FOXA) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.
Luckily, broadcasting stocks have performed well with share prices up 23.1% on average since the latest earnings results.
Best Q2: 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 $3.29 billion, up 6.3% year on year. This print exceeded analysts’ expectations by 5.5%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ adjusted operating income and EPS estimates.
FOX pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 1.6% since reporting and currently trades at $58.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $600 million, down 4.1% year on year, outperforming analysts’ expectations by 3%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 18.7% since reporting. It currently trades at $7.12.
Is now the time to buy AMC Networks? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q2: 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 $772 million, down 6.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter missing analysts’ expectations.
Gray Television delivered the slowest revenue growth in the group. Interestingly, the stock is up 18% since the results and currently trades at $4.92.
Read our full analysis of Gray Television’s results here.
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 $933.7 million, flat year on year. This result beat analysts’ expectations by 2.4%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is up 84.4% since reporting and currently trades at $2.95.
Read our full, actionable report on iHeartMedia here, it’s free for active Edge members.
Paramount (NASDAQ: PSKY)
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 $6.85 billion, flat year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates.
The stock is up 35.2% since reporting and currently trades at $16.98.
Read our full, actionable report on Paramount here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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