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Unpacking Q1 Earnings: Paramount (NASDAQ:PARA) In The Context Of Other Broadcasting Stocks


Jabin Bastian /
2024/06/28 4:54 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Paramount (NASDAQ:PARA) and the best and worst performers in the broadcasting industry.

Broadcasting companies have been facing secular headwinds in the form of consumers abandoning traditional television and radio in favor of streaming services. As a result, many broadcasting companies have evolved by forming distribution agreements with major streaming platforms so they can get in on part of the action, but will these subscription revenues be as high quality and high margin as their legacy revenues? Only time will tell which of these broadcasters will survive the sea changes of technological advancement and fragmenting consumer attention.

The 9 broadcasting stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 0.6%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and broadcasting stocks have had a rough stretch, with share prices down 19.9% on average since the previous earnings results.

Paramount (NASDAQ:PARA)

Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.

Paramount reported revenues of $7.69 billion, up 5.8% year on year, falling short of analysts' expectations by 0.7%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

Paramount Total Revenue

The stock is down 16.2% since the results and currently trades at $10.26.

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

Best Q1: Nexstar Media (NASDAQ:NXST)

Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.

Nexstar Media reported revenues of $1.28 billion, up 2.1% year on year, falling short of analysts' expectations by 0.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Core Advertising revenue estimates.

Nexstar Media Total Revenue

The stock is down 4.8% since the results and currently trades at $159.8.

Is now the time to buy Nexstar Media? Access our full analysis of the earnings results here, it's free.

Slowest Q1: AMC Networks (NASDAQ:AMCX)

Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.

AMC Networks reported revenues of $596.5 million, down 16.9% year on year, falling short of analysts' expectations by 0.8%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.

AMC Networks had the slowest revenue growth in the group. The stock is down 32.6% since the results and currently trades at $9.26.

Read our full analysis of AMC Networks's results here.

FOX (NASDAQ:FOXA)

Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

FOX reported revenues of $3.45 billion, down 15.6% year on year, in line with analysts' expectations. It was a good quarter for the company, with a solid beat of analysts' operating margin estimates and a decent beat of analysts' earnings estimates.

FOX scored the biggest analyst estimates beat among its peers. The stock is up 3.2% since the results and currently trades at $33.35.

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

iHeartMedia (NASDAQ:IHRT)

Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ:IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.

iHeartMedia reported revenues of $799 million, down 1.5% year on year, falling short of analysts' expectations by 0.8%. It was a mixed quarter for the company, with a miss of analysts' operating margin estimates.

The stock is down 50.7% since the results and currently trades at $1.07.

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

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