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Q1 Rundown: Disney (NYSE:DIS) Vs Other Media Stocks


Petr Huřťák /
2024/05/28 9:36 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how media stocks fared in Q1, starting with Disney (NYSE:DIS).

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 8 media stocks we track reported a weak Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the media stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.9% on average since the previous earnings results.

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 mixed quarter for the company. Disney slightly top analysts' operating margin expectations this quarter. On the other hand, its Experiences segment revenue fell short of Wall Street's estimates, leading to a slight total revenue miss. Additionally, Experiences segment operating income expected to come in comparable vs. last year's amount, lower than Wall Street's expectation.

“Our strong performance in Q2, with adjusted EPS(1) up 30% compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.

Disney Total Revenue

The stock is down 13% since the results and currently trades at $101.36.

Read our full report on Disney 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, with an impressive beat of analysts' earnings estimates. 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 7.7% since the results and currently trades at $49.8.

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 and slowest revenue growth in the group. The stock is down 0.7% since the results and currently trades at $7.74.

Read our full analysis of Warner Bros. Discovery's results here.

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 $402.3 million, up 24% year on year, surpassing analysts' expectations by 5.5%. It was a strong quarter as fuboTV blew past analysts' revenue and EPS expectations

fuboTV achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 20% since the results and currently trades at $1.24.

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

Warner Music Group (NASDAQ:WMG)

Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ:WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.

Warner Music Group reported revenues of $1.49 billion, up 6.8% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 15.6% since the results and currently trades at $30.43.

Read our full, actionable report on Warner Music Group here, it's free.

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