Broadcasting Stocks Q3 Recap: Benchmarking iHeartMedia (NASDAQ:IHRT)

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Broadcasting Stocks Q3 Recap: Benchmarking iHeartMedia (NASDAQ:IHRT)

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how iHeartMedia (NASDAQ:IHRT) and the rest of the broadcasting stocks fared in Q3.

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.

While some broadcasting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.

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. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS and adjusted operating income estimates.

iHeartMedia Total Revenue
iHeartMedia Total Revenue

Interestingly, the stock is up 37% since reporting and currently trades at $2.38.

Read our full report on iHeartMedia 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.

AMC Networks Total Revenue
AMC Networks Total Revenue

The market seems happy with the results as the stock is up 14% since reporting. It currently trades at $9.53.

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.