The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how iHeartMedia (NASDAQ:IHRT) and the rest of the broadcasting stocks fared in Q3.
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 1.6% since the latest earnings results.
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 $1.01 billion, up 5.8% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS and adjusted operating income estimates.
Interestingly, the stock is up 37% since reporting and currently trades at $2.38.
Read our full report on iHeartMedia 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 14% since reporting. It currently trades at $9.53.
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 26.4% since the results and currently trades at $4.26.
Read our full analysis of Gray Television’s results here.
Nexstar Media (NASDAQ:NXST)
Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.
Nexstar Media reported revenues of $1.37 billion, up 20.7% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.
Nexstar Media achieved the fastest revenue growth among its peers. The stock is down 7.4% since reporting and currently trades at $169.70.
Read our full, actionable report on Nexstar Media here, it’s free.
Sinclair (NASDAQ:SBGI)
Founded in 1971, Sinclair (NASDAQ:SBGI) is an American media company operating numerous television stations and providing multi-platform broadcasting services.
Sinclair reported revenues of $917 million, up 19.6% year on year. This result missed analysts’ expectations by 0.8%. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ EPS estimates.
The stock is up 3.7% since reporting and currently trades at $18.05.
Read our full, actionable report on Sinclair here, it’s free.
Market Update
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 US 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. Said differently, there's still much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
