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The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let\u2019s take a look at how EchoStar (NASDAQ:SATS) and the rest of the media & entertainment stocks fared in Q4.<\/p>\n
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. <\/p>\n
The 16 media & entertainment stocks we track reported a mixed Q4. As a group, revenues beat analysts\u2019 consensus estimates by 2.6% while next quarter\u2019s revenue guidance was in line. <\/p>\n
Thankfully, share prices of the companies have been resilient as they are up 7.2% on average since the latest earnings results. <\/p>\n
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.<\/p>\n
EchoStar reported revenues of $3.80 billion, down 4.3% year on year. This print exceeded analysts\u2019 expectations by 1.3%. Overall, it was an exceptional quarter for the company with a beat of analysts\u2019 EPS estimates and a narrow beat of analysts\u2019 revenue estimates. <\/p>\n
The stock is down 6.5% since reporting and currently trades at $108.02. <\/p>\n
Is now the time to buy EchoStar? Access our full analysis of the earnings results here, it\u2019s free<\/a>.<\/p>\n 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.<\/p>\n IMAX reported revenues of $125.2 million, up 35.1% year on year, outperforming analysts\u2019 expectations by 3.8%. The business had a stunning quarter with a beat of analysts\u2019 EPS estimates and an impressive beat of analysts\u2019 revenue estimates. <\/p>\n IMAX delivered the fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $37.47. <\/p>\n Is now the time to buy IMAX? Access our full analysis of the earnings results here, it\u2019s free<\/a>.<\/p>\n Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.<\/p>\n WEBTOON reported revenues of $330.7 million, down 6.3% year on year, falling short of analysts\u2019 expectations by 4.6%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts\u2019 expectations significantly and a significant miss of analysts\u2019 revenue estimates. <\/p>\n WEBTOON delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22.8% since the results and currently trades at $8.90. <\/p>\n Read our full analysis of WEBTOON\u2019s results here. <\/a><\/p>\n Originally known as InterActiveCorp and built through Barry Diller’s strategic acquisitions since the 1990s, IAC (NASDAQ:IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.<\/p>\n IAC reported revenues of $646 million, down 10.5% year on year. This number beat analysts\u2019 expectations by 0.8%. However, it was a softer quarter as it logged a significant miss of analysts\u2019 EPS estimates. <\/p>\n The stock is up 2.8% since reporting and currently trades at $37.84. <\/p>\n Read our full, actionable report on IAC here, it\u2019s free.<\/a><\/p>\n Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.<\/p>\n Rumble reported revenues of $27.07 million, down 10.5% year on year. This result met analysts\u2019 expectations. Aside from that, it was a softer quarter as it produced a significant miss of analysts\u2019 EPS estimates and revenue in line with analysts\u2019 estimates. <\/p>\n The stock is down 4.9% since reporting and currently trades at $5.33. <\/p>\nBest Q4: IMAX (NYSE:IMAX)<\/h2>\n
Weakest Q4: WEBTOON (NASDAQ:WBTN)<\/h2>\n
IAC (NASDAQ:IAC)<\/h2>\n
Rumble (NASDAQ:RUM)<\/h2>\n