Wrapping up Q1 earnings, we look at the numbers and key takeaways for the media stocks, including Scholastic (NASDAQ:SCHL) 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 satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 5.3%.
Luckily, media stocks have performed well with share prices up 16.9% on average since the latest earnings results.
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 $335.4 million, up 3.6% year on year. This print fell short of analysts’ expectations by 3.5%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
Peter Warwick, President and Chief Executive Officer, said, "Scholastic achieved modest revenue growth and improved operating results in the third quarter. Despite increasing pressure on family and school spending on books and educational materials, strong performance by School Book Fairs and Clubs, successful new titles and the addition of 9 Story Media Group contributed to positive results, underscoring Scholastic's unique strengths engaging kids with great books and quality children's media.
Interestingly, the stock is up 10.2% since reporting and currently trades at $20.70.
Is now the time to buy Scholastic? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $23.62 billion, up 7% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Disney delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 30.1% since reporting. It currently trades at $119.82.
Is now the time to buy Disney? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.48 billion, flat year on year, falling short of analysts’ expectations by 2.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ Recorded Music revenue estimates.
Interestingly, the stock is up 3% since the results and currently trades at $31.
Read our full analysis of Warner Music Group’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 $635.9 million, up 7.1% year on year. This number met analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The New York Times delivered the fastest revenue growth among its peers. The stock is up 2.3% since reporting and currently trades at $53.87.
Read our full, actionable report on The New York Times 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 $2.01 billion, flat year on year. This result beat analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 4.9% since reporting and currently trades at $29.88.
Read our full, actionable report on News Corp here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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