Q1 Earnings Outperformers: Gray Television (NYSE:GTN) And The Rest Of The Broadcasting Stocks
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 Gray Television (NYSE:GTN) 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 an ok Q1; on average, revenues missed analyst consensus estimates by 0.6%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and broadcasting stocks have had a rough stretch, with share prices down 9.4% on average since the previous earnings results.
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 $823 million, up 2.7% year on year, falling short of analysts' expectations by 0.2%. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.
The stock is down 12.3% since the results and currently trades at $5.84.
Is now the time to buy Gray Television? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $1.28 billion, up 2.1% year on year, falling short of analysts' expectations by 0.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Core Advertising revenue estimates.
The stock is down 4.4% since the results and currently trades at $160.5.
Is now the time to buy Nexstar Media? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 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 $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' revenue and earnings estimates.
AMC Networks had the slowest revenue growth in the group. The stock is up 28.8% since the results and currently trades at $17.7.
Read our full analysis of AMC Networks'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 $3.45 billion, down 15.6% year on year, in line with analysts' expectations. It was a strong quarter for the company, with a solid beat of analysts' operating margin estimates and a decent beat of analysts' earnings estimates.
FOX achieved the biggest analyst estimates beat among its peers. The stock is up 6.1% since the results and currently trades at $34.28.
Read our full, actionable report on FOX 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 $798 million, up 3.2% year on year, falling short of analysts' expectations by 0.5%. It was a solid quarter for the company. Sinclair blew past analysts' EPS expectations. Lookig ahead, next quarter's revenue and adjusted EBITDA guidance came in higher than Wall Street's estimates.
The stock is down 4.4% since the results and currently trades at $12.68.
Read our full, actionable report on Sinclair here, it's free.
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