Broadcasting Stocks Q4 Teardown: Gray Television (NYSE:GTN) Vs The Rest
Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at Gray Television (NYSE:GTN) 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 weaker Q4; on average, revenues missed analyst consensus estimates by 0.5% while next quarter's revenue guidance was 4.9% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, and broadcasting stocks have not been spared, with share prices down 11% 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 $864 million, down 19.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a narrow beat of analysts' revenue estimates but revenue guidance for next quarter missing analysts' expectations.
The stock is down 24.6% since the results and currently trades at $6.
Is now the time to buy Gray Television? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $4.23 billion, down 8.1% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' EBITDA and EPS estimates. Its revenue, although down year on year, also slightly beat thanks to better-than-expected affiliate (retransmission fee) and advertising revenue.
The stock is down 4.8% since the results and currently trades at $30.1.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $725.9 million, down 20.9% year on year, falling short of analyst expectations by 3.3%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
TEGNA had the weakest performance against analyst estimates in the group. The stock is up 5.2% since the results and currently trades at $14.24.
Read our full analysis of TEGNA's results here.
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 $678.8 million, down 29.6% year on year, in line with analyst expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
AMC Networks had the slowest revenue growth among its peers. The stock is down 29.5% since the results and currently trades at $12.
Read our full, actionable report on AMC Networks here, it's free.
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 $615.8 million, down 9.6% year on year, surpassing analyst expectations by 2.3%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. On the other hand, E.W. Scripps beat analysts' revenue expectations this quarter, driven by better-than-expected performance in its Scripps Networks segment (national news).
E.W. Scripps pulled off the biggest analyst estimates beat among its peers. The stock is down 29.2% since the results and currently trades at $3.83.
Read our full, actionable report on E.W. Scripps here, it's free.
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