Q2 Earnings Highs And Lows: Sinclair (NASDAQ:SBGI) Vs The Rest Of The Broadcasting Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how broadcasting stocks fared in Q2, starting with Sinclair (NASDAQ:SBGI).
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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, broadcasting stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $829 million, up 7.9% year on year. This print fell short of analysts’ expectations by 1.1%, but it was still a decent quarter for the company with an impressive beat of analysts’ earnings estimates.
"Sinclair delivered solid second-quarter results, meeting our guidance expectations across major financial metrics, including a $105 million monetization of an investment in our Ventures portfolio," commented Chris Ripley, Sinclair's President and Chief Executive Officer.
Sinclair achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 8% since reporting and currently trades at $14.08.
Is now the time to buy Sinclair? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $3.09 billion, up 2% year on year, in line with analysts’ expectations. It was a strong quarter for the company with a decent beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 14% since reporting. It currently trades at $41.47.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $573.6 million, down 1.6% year on year, falling short of analysts’ expectations by 2%. It was a weak quarter for the company with a miss of analysts’ revenue and EPS estimates.
As expected, the stock is down 29% since the results and currently trades at $2.11.
Read our full analysis of E.W. Scripps’s results here.
Paramount (NASDAQ:PARA)
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Paramount reported revenues of $6.81 billion, down 10.5% year on year, falling short of analysts’ expectations by 5.9%. More broadly, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted EBITDA estimates.
Paramount had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 2.7% since reporting and currently trades at $10.49.
Read our full, actionable report on Paramount here, it’s free.
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 $929.1 million, flat year on year, surpassing analysts’ expectations by 1.4%. Zooming out, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
The stock is up 12.4% since reporting and currently trades at $1.62.
Read our full, actionable report on iHeartMedia here, it’s free.
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