Looking back on broadcasting stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Nexstar Media (NASDAQ:NXST) 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 8 broadcasting stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 12.8% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.8% since the latest earnings results.
Nexstar Media (NASDAQ:NXST)
Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.
Nexstar Media reported revenues of $1.49 billion, up 14.1% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 2.3% since reporting and currently trades at $149.58.
Read our full report on Nexstar Media 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 $5.08 billion, up 19.9% year on year, outperforming analysts’ expectations by 5%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
FOX pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.8% since reporting. It currently trades at $49.96.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $7.98 billion, up 4.5% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 3.3% since the results and currently trades at $11.61.
Read our full analysis of Paramount’s results here.
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 $1.05 billion, up 20.9% year on year. This number topped analysts’ expectations by 0.7%. Taking a step back, it was a satisfactory quarter as it also produced a decent beat of analysts’ adjusted operating income estimates.
Gray Television achieved the fastest revenue growth among its peers. The stock is down 13.4% since reporting and currently trades at $3.35.
Read our full, actionable report on Gray Television 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 $728.4 million, up 18.3% year on year. This result was in line with analysts’ expectations. More broadly, it was a slower quarter as it logged a miss of analysts’ EPS estimates and a miss of analysts’ Local Media revenue estimates.
The stock is up 39.2% since reporting and currently trades at $1.99.
Read our full, actionable report on E.W. Scripps here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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