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Unpacking Q1 Earnings: News Corp (NASDAQ:NWSA) In The Context Of Other Media Stocks


Kayode Omotosho /
2024/07/05 6:24 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the media industry, including News Corp (NASDAQ:NWSA) 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 weaker Q1; on average, revenues beat analyst consensus estimates by 0.8%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the media stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.1% on average since the previous earnings results.

News Corp (NASDAQ:NWSA)

Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.

News Corp reported revenues of $2.42 billion, down 1% year on year, falling short of analysts' expectations by 1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates and a miss of analysts' News Media revenue estimates.

News Corp Total Revenue

The stock is up 16.3% since the results and currently trades at $28.07.

Read our full report on News Corp 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 mixed quarter for the company: The New York Times blew past analysts' EPS expectations. On the other hand, its number of subscribers unfortunately missed. Additionally, the company slightly lowered its full year outlook for subscription revenue growth.

The New York Times Total Revenue

The stock is up 13.1% since the results and currently trades at $52.3.

Is now the time to buy The New York Times? Access our full analysis of the earnings results here, it's free.

Slowest Q1: 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%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Warner Bros. Discovery had the weakest performance against analyst estimates in the group. The stock is down 6.6% since the results and currently trades at $7.27.

Read our full analysis of Warner Bros. Discovery'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 $323.7 million, down 0.4% year on year, falling short of analysts' expectations by 1.7%. It was a weak quarter for the company, with revenue and EPS missing analysts' expectations.

The stock is down 6.8% since the results and currently trades at $35.3.

Read our full, actionable report on Scholastic 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 $22.08 billion, up 1.2% year on year, falling short of analysts' expectations by 0.3%. It was a weak quarter for the company: Disney slightly topped analysts' operating margin expectations. On the other hand, its Experiences segment revenue fell short of Wall Street's estimates, leading to a slight total revenue miss.

The stock is down 15.4% since the results and currently trades at $98.52.

Read our full, actionable report on Disney here, it's free.

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