Wrapping up Q3 earnings, we look at the numbers and key takeaways for the media stocks, including Warner Bros. Discovery (NASDAQ:WBD) and its peers.
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 satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest 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 $9.62 billion, down 3.6% year on year. This print fell short of analysts’ expectations by 1.7%, but it was still a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 21.4% since reporting and currently trades at $10.14.
Is now the time to buy Warner Bros. Discovery? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $386.2 million, up 20.3% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with an impressive beat of analysts’ EPS and EBITDA estimates.
fuboTV delivered 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 12.6% since reporting. It currently trades at $1.52.
Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $2.03 billion, up 66.6% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Endeavor delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.6% since the results and currently trades at $30.92.
Read our full analysis of Endeavor’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 $22.57 billion, up 6.3% year on year. This number met analysts’ expectations. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ adjusted operating income.
The stock is up 12.6% since reporting and currently trades at $115.61.
Read our full, actionable report on Disney here, it’s free.
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 $237.2 million, up 3.8% year on year. This result topped analysts’ expectations by 1.6%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
The stock is down 9.9% since reporting and currently trades at $27.22.
Read our full, actionable report on Scholastic here, it’s free.
Market Update
As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the US Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain. Said differently, there's still much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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