Let’s dig into the relative performance of iHeartMedia (NASDAQ: IHRT) and its peers as we unravel the now-completed Q4 broadcasting earnings season.
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 8 broadcasting stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 12.6% above.
Luckily, broadcasting stocks have performed well with share prices up 16.8% 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 $1.12 billion, up 4.8% year on year. This print fell short of analysts’ expectations by 4.1%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
“Our fourth quarter Adjusted EBITDA of $246 million was up 18.2% vs. prior year, our highest percentage increase in almost three years, and our consolidated revenues were up 4.8% compared to the prior year, demonstrating the inherent operating leverage in this business,” said Bob Pittman, Chairman and CEO of iHeartMedia,
iHeartMedia delivered the weakest performance against analyst estimates of the whole group. The stock is down 26.2% since reporting and currently trades at $1.59.
Read our full report on iHeartMedia here, it’s free.
Best Q4: 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 $5.08 billion, up 19.9% year on year, outperforming analysts’ expectations by 5%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
FOX scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $53.06.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Paramount (NASDAQ: PARA)
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 $7.98 billion, up 4.5% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 5.9% since the results and currently trades at $11.90.
Read our full analysis of Paramount’s results here.
Nexstar Media (NASDAQ: NXST)
Founded in 1996, Nexstar (NASDAQ: NXST) is an American media company operating numerous local television stations and digital media outlets across the country.
Nexstar Media reported revenues of $1.49 billion, up 14.1% year on year. This result surpassed analysts’ expectations by 0.5%. However, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and a miss of analysts’ Core Advertising revenue estimates.
The stock is up 20.3% since reporting and currently trades at $176.01.
Read our full, actionable report on Nexstar Media 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 $1.05 billion, up 20.9% year on year. This print beat analysts’ expectations by 0.7%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter meeting analysts’ expectations.
Gray Television pulled off the fastest revenue growth among its peers. The stock is up 34.9% since reporting and currently trades at $5.22.
Read our full, actionable report on Gray Television here, it’s free.
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