A Look Back at Media Stocks' Q4 Earnings: Warner Bros. Discovery (NASDAQ:WBD) Vs The Rest Of The Pack
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at media stocks, starting with Warner Bros. Discovery (NASDAQ:WBD).
The advent of the internet changed how shows, films, music, and overall information flow. As a result, many media companies now face secular headwinds as attention shifts online. Some have made concerted efforts to adapt by introducing digital subscriptions, podcasts, and streaming platforms. Time will tell if their strategies succeed and which companies will emerge as the long-term winners.
The 8 media stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.7%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due 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 media stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.1% on average since the previous earnings results.
Warner Bros. Discovery (NASDAQ:WBD)
Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Warner Bros. Discovery reported revenues of $10.28 billion, down 6.6% year on year, falling short of analyst expectations by 1.3%. It was a slower quarter for the company, with a miss of analysts' revenue, operating margin, and EPS estimates, driven by weak performance in its Studio segment (revenue dropped 17% year on year and significantly missed estimates).
Warner Bros. Discovery delivered the slowest revenue growth of the whole group. The stock is down 10.2% since the results and currently trades at $8.56.
Read our full report on Warner Bros. Discovery here, it's free.
Best Q4: News Corp (NASDAQ:NWSA)
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
News Corp reported revenues of $2.59 billion, up 2.6% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 2.8% since the results and currently trades at $24.92.
Is now the time to buy News Corp? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Scholastic (NASDAQ:SCHL)
Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ:SCHL) is an international company specializing in children's publishing, education, and media services.
Scholastic reported revenues of $323.7 million, down 0.4% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
Scholastic had the weakest performance against analyst estimates in the group. The stock is down 5% since the results and currently trades at $36.01.
Read our full analysis of Scholastic's results here.
Endeavor (NYSE:EDR)
Owner of the UFC, WWE, and a client roster including Christian Bale, Endeavor (NYSE:EDR) is a diversified global entertainment, sports, and content company known for its talent representation and involvement in the entertainment industry.
Endeavor reported revenues of $1.58 billion, up 25.6% year on year, surpassing analyst expectations by 4.4%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 7.7% since the results and currently trades at $26.36.
Read our full, actionable report on Endeavor here, it's free.
fuboTV (NYSE:FUBO)
Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
fuboTV reported revenues of $410.2 million, up 28.5% year on year, surpassing analyst expectations by 3.1%. It was a strong quarter for the company, with a decent beat of analysts' revenue estimates.
fuboTV achieved the fastest revenue growth among its peers. The stock is down 27.5% since the results and currently trades at $1.5.
Read our full, actionable report on fuboTV here, it's free.
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