As the Q4 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 TEGNA (NYSE:TGNA) 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 8 broadcasting stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 12.8% above.
While some broadcasting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% 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 $870.5 million, up 19.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ Subscription revenue estimates.
“As TEGNA enters its next chapter, we are reinventing how we create and monetize content to capture the full opportunity in both linear TV and digital,” said Mike Steib, CEO.
TEGNA Total Revenue
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $16.44.
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 $5.08 billion, up 19.9% year on year, outperforming analysts’ expectations by 5%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
FOX Total Revenue
FOX delivered the biggest analyst estimates beat among its peers. The stock is down 5.1% since reporting. It currently trades at $49.27.
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 $7.98 billion, up 4.5% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
The stock is flat since the results and currently trades at $11.26.
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 $728.4 million, up 18.3% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it logged a miss of analysts’ EPS estimates and a miss of analysts’ Local Media revenue estimates.
The stock is up 71.3% since reporting and currently trades at $2.45.
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 $1.05 billion, up 20.9% year on year. This print surpassed analysts’ expectations by 0.7%. Zooming out, it was a satisfactory quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter meeting analysts’ expectations.
Gray Television delivered the fastest revenue growth among its peers. The stock is up 2.3% since reporting and currently trades at $3.96.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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