Looking back on broadcasting stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including iHeartMedia (NASDAQ: IHRT) 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 7 broadcasting stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.
Luckily, broadcasting stocks have performed well with share prices up 25% on average since the latest earnings results.
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 $933.7 million, flat year on year. This print exceeded analysts’ expectations by 2.4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
“Our second quarter performance was solid and slightly ahead of our initial expectations, with our Q2 adjusted EBITDA of $156 million at the upper end of our previously provided guidance range and 4% above prior year and our consolidated revenue for the quarter was above our guidance range, up 0.5% above prior year,” said Bob Pittman, Chairman and CEO of iHeartMedia.
Interestingly, the stock is up 46.2% since reporting and currently trades at $2.34.
Read our full report on iHeartMedia 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 $3.29 billion, up 6.3% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
FOX pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 4.3% since reporting. It currently trades at $59.54.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
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 $772 million, down 6.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Gray Television delivered the slowest revenue growth in the group. Interestingly, the stock is up 49.6% since the results and currently trades at $6.24.
Read our full analysis of Gray Television’s results here.
AMC Networks (NASDAQ: AMCX)
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.
AMC Networks reported revenues of $600 million, down 4.1% year on year. This number beat analysts’ expectations by 3%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 16.5% since reporting and currently trades at $6.99.
Read our full, actionable report on AMC Networks here, it’s free.
Paramount (NASDAQ: PSKY)
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 $6.85 billion, flat year on year. This result was in line with analysts’ expectations. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 17.8% since reporting and currently trades at $14.80.
Read our full, actionable report on Paramount here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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