Let’s dig into the relative performance of Disney (NYSE:DIS) and its peers as we unravel the now-completed Q4 media earnings season.
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 5 media stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.7%.
In light of this news, share prices of the companies have held steady as they are up 4.7% on average since the latest 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 $25.98 billion, up 5.2% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
Unsurprisingly, the stock is down 2.6% since reporting and currently trades at $109.91.
Is now the time to buy Disney? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $1.84 billion, up 10.4% year on year, outperforming analysts’ expectations by 4.1%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
Warner Music Group achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.2% since reporting. It currently trades at $30.79.
Is now the time to buy Warner Music Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $802.3 million, up 10.4% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates.
As expected, the stock is down 2.2% since the results and currently trades at $70.60.
Read our full analysis of The New York Times’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 $551.1 million, up 1.2% year on year. This print lagged analysts' expectations by 1%. More broadly, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
Scholastic had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 21.7% since reporting and currently trades at $35.
Read our full, actionable report on Scholastic here, it’s free.
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 $2.36 billion, up 5.5% year on year. This number beat analysts’ expectations by 3%. It was a strong quarter as it also recorded a decent beat of analysts’ revenue estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is down 2.6% since reporting and currently trades at $23.58.
Read our full, actionable report on News Corp 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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