iHeartMedia (IHRT) Reports Q1: Everything You Need To Know Ahead Of Earnings

Global media and entertainment company iHeartMedia (NASDAQ:IHRT) will be reporting earnings tomorrow before market open. Here's what to look for.

iHeartMedia beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $1.07 billion, down 5.2% year on year. It was a solid quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

Is iHeartMedia a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting iHeartMedia's revenue to be flat year on year at $805.9 million, improving from the 3.8% decrease it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. iHeartMedia has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at iHeartMedia's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paramount delivered year-on-year revenue growth of 5.8%, meeting analysts' expectations, and Gray Television reported revenues up 2.7%, in line with consensus estimates. Paramount traded down 7.2% following the results.

Read our full analysis of Paramount's results here and Gray Television's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. iHeartMedia is up 5.6% during the same time and is heading into earnings with an average analyst price target of $2.8 (compared to the current share price of $2.46).

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