- SATS
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at EchoStar (NASDAQ:SATS) and the best and worst performers in the media & entertainment industry.
Simply put, traditional media like linear TV is losing eyeballs and as a result, ad dollars as well. On the other hand, digital media such as streaming and social media are taking share of audience and ad spend. AI-driven content creation and digital advertising are continuing to evolve, which benefits companies in the sector that invest behind these themes. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate for companies in the space include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.
The 16 media & entertainment stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.9% below.
While some media & entertainment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.
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 $3.80 billion, down 4.3% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and revenue estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $116.32.
Is now the time to buy EchoStar? Access our full analysis of the earnings results here, it’s free.
Best Q4: Clear Channel Outdoor (NYSE:CCO)
With thousands of digital and traditional displays lighting up America’s highways, city streets, and airports, Clear Channel Outdoor (NYSE:CCO) operates billboards, street furniture, and airport displays, connecting advertisers with millions of consumers across the US.
Clear Channel Outdoor reported revenues of $461.5 million, up 8.2% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS in line with analysts’ estimates and a solid beat of analysts’ revenue estimates.
