Winners And Losers Of Q4: Paramount (NASDAQ:PSKY) Vs The Rest Of The Consumer Discretionary - Broadcasting Stocks

Let’s dig into the relative performance of Paramount (NASDAQ:PSKY) and its peers as we unravel the now-completed Q4 consumer discretionary - broadcasting earnings season.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Broadcasting companies produce and distribute television and radio content, generating revenue primarily through advertising and, in some cases, retransmission fees (payments cable and satellite operators make to carry local channels). Tailwinds include resilient demand for live sports and event programming, which commands premium ad rates, and political advertising during election cycles. Headwinds, however, are substantial: secular cord-cutting (consumers canceling traditional pay-TV subscriptions) is shrinking linear audiences, digital platforms are capturing an increasing share of advertising budgets, and content production costs continue to rise. Regulatory scrutiny over media consolidation and spectrum ownership further constrains strategic flexibility.

The 7 consumer discretionary - broadcasting stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results.

Paramount (NASDAQ:PSKY)

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 $8.15 billion, down 5.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

Paramount delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 16.4% since reporting and currently trades at $11.83.

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

Best Q4: 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 $5.18 billion, up 2% year on year, outperforming analysts’ expectations by 1.8%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

FOX delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16% since reporting. It currently trades at $59.03.

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

Weakest Q4: 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 $1.13 billion, flat year on year, exceeding analysts’ expectations by 2.8%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 8.8% since the results and currently trades at $3.39.

Read our full analysis of iHeartMedia’s results here.

Gray Television (NYSE:GTN)

Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.

Gray Television reported revenues of $792 million, down 24.2% year on year. This number beat analysts’ expectations by 1.5%. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

Gray Television had the slowest revenue growth among its peers. The stock is up 15.1% since reporting and currently trades at $5.47.

Read our full, actionable report on Gray Television here, it’s free.

TEGNA (NYSE:TGNA)

Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.

TEGNA reported revenues of $706.1 million, down 18.9% year on year. This print topped analysts’ expectations by 1%. Overall, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $20.98.

Read our full, actionable report on TEGNA here, it’s free.

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