Broadcasting stocks Q1 teardown: Fox Vs the rest

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the broadcasting industry, including FOX 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 9 broadcasting stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 0.6%. while next quarter’s revenue guidance was in line with consensus. Stocks–especially those trading at higher multiples–had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and broadcasting stocks have had a rough stretch, with share prices down 13.8% on average since the previous earnings results.

FOX
Founded in 1915, Fox is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

FOX reported revenues of $3.45 billion, down 15.6% year on year, in line with analysts’ expectations. It was a good quarter for the company, with a decent beat of analysts’ earnings estimates.

FOX achieved the biggest analyst estimates beat of the whole group. The stock is up 4% since the results and currently trades at $33.61.

Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.

Best Q1: Nexstar Media
Founded in 1996, Nexstar is an American media company operating numerous local television stations and digital media outlets across the country.

Nexstar Media reported revenues of $1.28 billion, up 2.1% year on year, falling short of analysts’ expectations by 0.4%. It was a strong quarter for the company, with an impressive beat of analysts’ earnings estimates.

The stock is down 5.2% since the results and currently trades at $159.06.

Is now the time to buy Nexstar Media? Access our full analysis of the earnings results here, it’s free.

Slowest Q1: AMC Networks
Originally the joint-venture of four cable television companies, AMC Networks is a broadcaster producing a diverse range of television shows and movies.

AMC Networks reported revenues of $596.5 million, down 16.9% year on year, falling short of analysts’ expectations by 0.8%. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.

AMC Networks had the slowest revenue growth in the group. The stock is up 10.9% since the results and currently trades at $15.24.

E.W. Scripps
Founded as a chain of daily newspapers, E.W. Scripps is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

E.W. Scripps reported revenues of $561.5 million, up 6.4% year on year, falling short of analysts’ expectations by 1.3%. It was a decent quarter for the company, with an impressive beat of analysts’ earnings estimates.

E.W. Scripps achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 48.1% since the results and currently trades at $2.4.

Sinclair
Founded in 1971, Sinclair is an American media company operating numerous television stations and providing multi-platform broadcasting services.

Sinclair reported revenues of $798 million, up 3.2% year on year, falling short of analysts’ expectations by 0.5%. It was a strong quarter for the company as Sinclair blew past analysts’ EPS expectations. Looking ahead, next quarter’s revenue and adjusted EBITDA guidance came in higher than Wall Street’s estimates.

The stock is down 5.8% since the results and currently trades at $12.49. Finance.Yahoo