Let’s dig into the relative performance of Sinclair (NASDAQ:SBGI) and its peers as we unravel the now-completed Q1 traditional media & publishing earnings season.
The sector faces structural headwinds from declining linear TV viewership, shifts in advertising spend toward digital platforms, and ongoing challenges in monetizing print and broadcast content. However, for companies that invest wisely, tailwinds can include AI, the power of which can result in more personalized content creation and more detailed audience analysis. These can create a flywheel of success where one feeds into the other. Still there are outstanding questions around AI-generated content oversight, and the regulatory framework around this could evolve in unseen ways over the next few years.
The 4 traditional media & publishing stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 5% on average since the latest earnings results.
Weakest Q1: Sinclair (NASDAQ:SBGI)
With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ:SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.
Sinclair reported revenues of $776 million, down 2.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS estimates.
"Sinclair delivered solid financial results in a challenging first quarter environment. Adjusted EBITDA exceeded the high-end of our guidance range and core advertising trends continue to be among the strongest in the industry, despite the macro-economic uncertainties and lack of visibility. We are seeing some signs of improvement in the pay TV ecosystem as consumers respond to innovative packaging," said Chris Ripley, Sinclair's President and Chief Executive Officer.
The stock is down 13.7% since reporting and currently trades at $13.55.
Read our full report on Sinclair here, it’s free.
Best Q1: IMAX (NYSE:IMAX)
Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE:IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.
IMAX reported revenues of $86.67 million, up 9.5% year on year, outperforming analysts’ expectations by 2.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates.
IMAX 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 18.3% since reporting. It currently trades at $28.44.
Is now the time to buy IMAX? Access our full analysis of the earnings results here, it’s free.
EchoStar (NASDAQ:SATS)
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ:SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
EchoStar reported revenues of $3.87 billion, down 3.6% year on year, in line with analysts’ expectations. Still, its results were good as it locked in an impressive beat of analysts’ EPS estimates.
EchoStar delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 9% since the results and currently trades at $26.
Read our full analysis of EchoStar’s results here.
Wiley (NYSE:WLY)
With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.
Wiley reported revenues of $442.6 million, down 5.5% year on year. This result surpassed analysts’ expectations by 1.7%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EPS estimates.
Wiley had the slowest revenue growth among its peers. The stock is up 6.5% since reporting and currently trades at $43.38.
Read our full, actionable report on Wiley here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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