As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the broadcasting industry, including E.W. Scripps (NASDAQ: SSP) 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 12.6% above.
Luckily, broadcasting stocks have performed well with share prices up 16.3% on average since the latest earnings results.
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 print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ EPS estimates.
The stock is up 124% since reporting and currently trades at $3.20.
Read our full report on E.W. Scripps 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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
FOX scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.4% since reporting. It currently trades at $54.74.
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 3.8% since the results and currently trades at $11.66.
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%. Aside from that, it was a satisfactory quarter as it also logged a decent beat of analysts’ adjusted operating income estimates.
Gray Television delivered the fastest revenue growth among its peers. The stock is up 15.8% since reporting and currently trades at $4.48.
Read our full, actionable report on Gray Television here, it’s free.
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 surpassed analysts’ expectations by 0.5%. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ Core Advertising revenue estimates.
The stock is up 23% since reporting and currently trades at $179.89.
Read our full, actionable report on Nexstar Media here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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