Wrapping up Q3 earnings, we look at the numbers and key takeaways for the media stocks, including News Corp (NASDAQ:NWSA) 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 9 media stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
While some media stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
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 $2.58 billion, up 3.1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
Unsurprisingly, the stock is down 4.8% since reporting and currently trades at $27.78.
Is now the time to buy News Corp? 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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ 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 20.7% since reporting. It currently trades at $1.38.
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 6.9% since the results and currently trades at $31.02.
Read our full analysis of Endeavor’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 $640.2 million, up 7% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but a miss of analysts’ subscribers estimates.
The stock is down 6.8% since reporting and currently trades at $52.96.
Read our full, actionable report on The New York Times here, it’s free.
John Wiley & Sons (NYSE:WLY)
Established in 1807, John Wiley & Sons (NYSE:WLY) is a global leader in academic publishing, providing educational materials, scholarly research, and professional development resources.
John Wiley & Sons reported revenues of $426.6 million, down 13.4% year on year. This result topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
John Wiley & Sons had the slowest revenue growth among its peers. The stock is down 10.8% since reporting and currently trades at $44.10.
Read our full, actionable report on John Wiley & Sons 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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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