Wrapping up Q2 earnings, we look at the numbers and key takeaways for the media stocks, including Disney (NYSE:DIS) 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.
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 print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ Experiences revenue estimates.
“We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.
Disney delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 4.9% since reporting and currently trades at $112.59.
Is now the time to buy Disney? Access our full analysis of the earnings results 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 a solid beat of analysts’ EPS estimates and an impressive 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.
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, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly.
Interestingly, the stock is up 14.5% since the results and currently trades at $24.67.
Read our full analysis of Scholastic’s results here.
The New York Times (NYSE:NYT)
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
The New York Times reported revenues of $685.9 million, up 9.7% year on year. This number surpassed analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
The New York Times achieved the fastest revenue growth among its peers. The stock is up 7.4% since reporting and currently trades at $57.62.
Read our full, actionable report on The New York Times here, it’s free.
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 $9.81 billion, up 1% year on year. This result met analysts’ expectations. It was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
The stock is down 15.8% since reporting and currently trades at $10.78.
Read our full, actionable report on Warner Bros. Discovery 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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