The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how media stocks fared in Q1, starting with News Corp (NASDAQ:NWSA).
The advent of the internet changed how shows, films, music, and overall information flow. As a result, many media companies now face secular headwinds as attention shifts online. Some have made concerted efforts to adapt by introducing digital subscriptions, podcasts, and streaming platforms. Time will tell if their strategies succeed and which companies will emerge as the long-term winners.
The 7 media stocks we track reported a satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 5.3%.
In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.
News Corp (NASDAQ:NWSA)
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
News Corp reported revenues of $2.01 billion, down 17.1% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
News Corp Total Revenue
News Corp delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $28.27.
Founded by brothers Walt and Roy, Disney (NYSE:DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Disney reported revenues of $23.62 billion, up 7% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Disney Total Revenue
Disney pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 22.2% since reporting. It currently trades at $112.50.
Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ:WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.
Warner Music Group reported revenues of $1.48 billion, flat year on year, falling short of analysts’ expectations by 2.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ Recorded Music revenue estimates.
As expected, the stock is down 8.4% since the results and currently trades at $27.55.
Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
fuboTV reported revenues of $416.3 million, up 3.5% year on year. This result lagged analysts' expectations by 28.7%. 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.
fuboTV had the weakest performance against analyst estimates among its peers. The stock is up 1.5% since reporting and currently trades at $2.95.
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
The New York Times reported revenues of $635.9 million, up 7.1% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The New York Times delivered the fastest revenue growth among its peers. The stock is up 4.5% since reporting and currently trades at $55.04.
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 U.S. 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, leaving much uncertainty around 2025.
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