As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the media industry, including Scholastic (NASDAQ:SCHL) 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 7 media stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $508.3 million, up 7% year on year. This print exceeded analysts’ expectations by 2.8%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
Peter Warwick, President and Chief Executive Officer, said, "Scholastic delivered solid financial results in fiscal 2025, with strong Adjusted EBITDA in line with our original guidance. In the fourth quarter, continued strength in Children's Book Publishing and Distribution, combined with successful execution and disciplined cost management, helped offset macroeconomic pressures on school spending, which continued to impact the Education division.
Interestingly, the stock is up 14.5% since reporting and currently trades at $24.67.
Read our full report on Scholastic 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 $380 million, down 2.8% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.9% since reporting. It currently trades at $3.58.
Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free.
News Corp (NASDAQ:NWSA)
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
News Corp reported revenues of $2.11 billion, flat year on year, exceeding analysts’ expectations by 1%. It was a satisfactory quarter as it also posted a decent beat of analysts’ EPS estimates but a miss of analysts’ News Media revenue estimates.
As expected, the stock is down 3% since the results and currently trades at $28.38.
Read our full analysis of News Corp’s results here.
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 $1.69 billion, up 8.7% year on year. This print topped analysts’ expectations by 6.2%. Aside from that, it was a satisfactory quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Warner Music Group achieved the biggest analyst estimates beat among its peers. The stock is up 4.1% since reporting and currently trades at $31.25.
Read our full, actionable report on Warner Music Group here, it’s free.
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 $23.65 billion, up 2.1% year on year. This number met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ Experiences revenue estimates.
Disney had the weakest performance against analyst estimates among its peers. The stock is down 4.9% since reporting and currently trades at $112.59.
Read our full, actionable report on Disney here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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