A Look Back at Media Stocks’ Q2 Earnings: Endeavor (NYSE:EDR) Vs The Rest Of The Pack
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 media stocks fared in Q2, starting with Endeavor (NYSE:EDR).
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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 2.7%.
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. Thankfully, media stocks have been resilient with share prices up 7.2% on average since the latest earnings results.
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 $1.75 billion, up 21.9% year on year. This print fell short of analysts’ expectations by 12.4%. Overall, it was a weak quarter for the company with a miss of analysts’ revenue and EPS estimates.
“TKO and PBR benefited from strong consumer demand and engagement during the quarter, and we continued to drive growth in our representation segment,” said Ariel Emanuel, CEO, Endeavor.
Interestingly, the stock is up 1.1% since reporting and currently trades at $27.49.
Read our full report on Endeavor here, it’s free.
Best Q2: 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 $391 million, up 25% year on year, outperforming analysts’ expectations by 6.2%. It was a good quarter for the company with a narrow beat of analysts’ earnings estimates.
fuboTV achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 54.4% since reporting. It currently trades at $2.03.
Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $474.9 million, down 10.1% year on year, falling short of analysts’ expectations by 14%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Scholastic had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.9% since the results and currently trades at $31.13.
Read our full analysis of Scholastic’s results here.
Disney (NYSE:DIS)
Founded by brothers Walt and Roy, Disney (NYSE:DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Disney reported revenues of $23.16 billion, up 3.7% year on year, in line with analysts’ expectations. More broadly, it was a decent quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ Sports revenue estimates.
The stock is flat since reporting and currently trades at $90.68.
Read our full, actionable report on Disney here, it’s free.
Warner Music Group (NASDAQ:WMG)
Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ:WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.
Warner Music Group reported revenues of $1.55 billion, flat year on year, falling short of analysts’ expectations by 1.1%. Zooming out, it was a slower quarter for the company with a miss of analysts’ Music Publishing revenue estimates and a miss of analysts’ earnings estimates.
The stock is up 4.9% since reporting and currently trades at $29.52.
Read our full, actionable report on Warner Music Group here, it’s free.
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