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 Q1. Today, we are looking at traditional media & publishing stocks, starting with EchoStar (NASDAQ: SATS).
The sector faces structural headwinds from declining linear TV viewership, shifts in advertising spend toward digital platforms, and ongoing challenges in monetizing print and broadcast content. However, for companies that invest wisely, tailwinds can include AI, the power of which can result in more personalized content creation and more detailed audience analysis. These can create a flywheel of success where one feeds into the other. Still there are outstanding questions around AI-generated content oversight, and the regulatory framework around this could evolve in unseen ways over the next few years.
The 4 traditional media & publishing stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 7.1% on average since the latest earnings results.
EchoStar (NASDAQ: SATS)
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
EchoStar reported revenues of $3.87 billion, down 3.6% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates.
"The EchoStar team performed well against our plan in the first quarter," said Hamid Akhavan, president and CEO, EchoStar Corporation.
EchoStar delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 19.5% since reporting and currently trades at $28.50.
Is now the time to buy EchoStar? Access our full analysis of the earnings results here, it’s free.
Best Q1: IMAX (NYSE: IMAX)
Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE: IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.
IMAX reported revenues of $86.67 million, up 9.5% year on year, outperforming analysts’ expectations by 2.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates.
IMAX delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $27.33.
Is now the time to buy IMAX? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Sinclair (NASDAQ: SBGI)
With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ: SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.
Sinclair reported revenues of $776 million, down 2.8% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS estimates.
As expected, the stock is down 11.3% since the results and currently trades at $13.93.
Read our full analysis of Sinclair’s results here.
Wiley (NYSE: WLY)
With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE: WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.
Wiley reported revenues of $442.6 million, down 5.5% year on year. This result beat analysts’ expectations by 1.7%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates.
Wiley had the slowest revenue growth among its peers. The stock is up 6.8% since reporting and currently trades at $43.51.
Read our full, actionable report on Wiley here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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