As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the broadcasting industry, including Paramount (NASDAQ: PARA) 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 19.7% on average since the latest earnings results.
Paramount (NASDAQ: PARA)
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 print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $11.04.
Is now the time to buy Paramount? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
FOX pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $58.68.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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, exceeding analysts’ expectations by 2.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 45.6% since the results and currently trades at $2.33.
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 $772 million, down 6.5% year on year. This result was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Gray Television had the slowest revenue growth among its peers. The stock is up 41.5% since reporting and currently trades at $5.90.
Read our full, actionable report on Gray Television here, it’s free.
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 $675 million, down 5% year on year. This number beat analysts’ expectations by 0.6%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 28.4% since reporting and currently trades at $21.05.
Read our full, actionable report on TEGNA here, it’s free.
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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