Winners And Losers Of Q1: Warner Bros. Discovery (NASDAQ:WBD) Vs The Rest Of The Media Stocks
As the Q1 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 Warner Bros. Discovery (NASDAQ:WBD) 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 weak Q1; on average, revenues missed analyst consensus estimates by 0.6%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and media stocks have held roughly steady amidst all this, with share prices up 1.8% on average since the previous earnings results.
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 $9.96 billion, down 6.9% year on year, falling short of analysts' expectations by 2.6%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 10% since reporting and currently trades at $8.56.
Read our full report on Warner Bros. Discovery here, it's free.
Best Q1: 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 $594 million, up 5.9% year on year, in line with analysts' expectations. It was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 13.8% since reporting. It currently trades at $52.64.
Is now the time to buy The New York Times? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $474.9 million, down 10.1% year on year, falling short of analysts' expectations by 14%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Scholastic had the weakest performance against analyst estimates in the group. As expected, the stock is down 19.6% since the results and currently trades at $29.41.
Read our full analysis of Scholastic's results here.
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 $1.85 billion, up 15.9% year on year, falling short of analysts' expectations by 1.1%. More broadly, it was a weak quarter for the company with a miss of analysts' revenue estimates.
The stock is up 2.8% since reporting and currently trades at $27.22.
Read our full, actionable report on Endeavor here, it's free.
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 $1.49 billion, up 6.8% year on year, in line with analysts' expectations. Revenue aside, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is down 9.8% since reporting and currently trades at $32.17.
Read our full, actionable report on Warner Music Group here, it's free.
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