Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at E.W. Scripps (NASDAQ:SSP) and the best and worst performers in the broadcasting industry.
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 3.4% since the latest earnings results.
E.W. Scripps (NASDAQ:SSP)
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 $646.3 million, up 14.1% year on year. This print exceeded analysts’ expectations by 2.7%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Unsurprisingly, the stock is down 32% since reporting and currently trades at $2.40.
Is now the time to buy E.W. Scripps? Access our full analysis of the earnings results 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.
The market seems happy with the results as the stock is up 16.1% since reporting. It currently trades at $9.71.
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.
Gray Television reported revenues of $950 million, up 18.3% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 36.8% since the results and currently trades at $3.66.
Read our full analysis of Gray Television’s results here.
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 $3.56 billion, up 11.1% year on year. This print topped analysts’ expectations by 5.7%. Overall, it was a stunning quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
FOX delivered the biggest analyst estimates beat among its peers. The stock is up 18.3% since reporting and currently trades at $49.52.
Read our full, actionable report on FOX here, it’s free.
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 $6.73 billion, down 5.6% year on year. This result missed analysts’ expectations by 3.4%. Taking a step back, it was still a very strong quarter as it put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Paramount had the weakest performance against analyst estimates among its peers. The stock is down 6% since reporting and currently trades at $10.86.
Read our full, actionable report on Paramount here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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