As the Q2 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 7 media stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1%.
Luckily, media stocks have performed well with share prices up 15.5% on average since the latest 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 $9.81 billion, up 1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Interestingly, the stock is up 40.7% since reporting and currently trades at $18.02.
Is now the time to buy Warner Bros. Discovery? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $380 million, down 2.8% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with a beat of analysts’ EPS and adjusted operating income estimates.
The market seems happy with the results as the stock is up 14.5% since reporting. It currently trades at $4.22.
Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free.
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 $508.3 million, up 7% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 31.8% since the results and currently trades at $28.40.
Read our full analysis of Scholastic’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 $685.9 million, up 9.7% year on year. This result surpassed analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.
The New York Times delivered the fastest revenue growth among its peers. The stock is up 8.5% since reporting and currently trades at $58.17.
Read our full, actionable report on The New York Times here, it’s free.
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 $23.65 billion, up 2.1% year on year. This print met analysts’ expectations. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.
Disney had the weakest performance against analyst estimates among its peers. The stock is down 1.6% since reporting and currently trades at $116.50.
Read our full, actionable report on Disney 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.
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