As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at media stocks, starting with Warner Bros. Discovery (NASDAQ: WBD).
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 satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 29.3% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.6% since the latest earnings results.
Slowest Q4: 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 $10.03 billion, down 2.5% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ Distribution revenue estimates.
Unsurprisingly, the stock is down 18.9% since reporting and currently trades at $8.51.
Read our full report on Warner Bros. Discovery here, it’s free.
Best Q4: 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 $24.69 billion, up 4.8% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 20% since reporting. It currently trades at $90.62.
Is now the time to buy Disney? Access our full analysis of the earnings results here, it’s free.
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 $726.6 million, up 7.5% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a decent beat of analysts’ EPS estimates but a miss of analysts’ subscribers estimates.
As expected, the stock is down 9.9% since the results and currently trades at $50.40.
Read our full analysis of The New York Times’s results here.
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 $335.4 million, up 3.6% year on year. This number missed analysts’ expectations by 3.5%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
Scholastic had the weakest performance against analyst estimates among its peers. The stock is down 8.2% since reporting and currently trades at $17.24.
Read our full, actionable report on Scholastic here, it’s free.
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 $443.3 million, up 8.1% year on year. This print met analysts’ expectations. It was a strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
fuboTV scored the fastest revenue growth among its peers. The stock is down 15.7% since reporting and currently trades at $2.98.
Read our full, actionable report on fuboTV here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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