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Media Stocks Q1 Earnings Due on Apr 27: CMCSA, SIRI & More
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We believe that the financial performance of media companies in the first quarter of 2023 will depend on the industry dynamics under which these operate.
Companies with traditional media formats like cable TV and radio are struggling to retain customers amid the growing popularity of over-the-top (OTT) services. Moreover, softness in ad spending amid current macroeconomic challenges and recessionary concerns are hurting the top and bottom lines of traditional media players.
Meanwhile, OTT service providers are benefiting from the proliferation of mobile devices and the increased penetration of Internet services. The pandemic only accelerated the trend, wherein the majority of OTT players witnessed massive new subscriber additions.
However, there has been a shift in the trend in the post-pandemic era, with players now focusing on profitability rather than just adding new subscribers. Rising costs and the debt-ridden balance sheets of OTT players are raising questions about the growth dynamics and economics of video streaming.
Furthermore, certain players in the entertainment and event-providing space, which were battered by pandemic-led lockdown measures adopted worldwide, are likely to see strong recovery with the reopening of economies.
The first-quarter 2023 earnings cycle for media stocks has already started, with Netflix reporting mixed results last week, wherein earnings topped the Zacks Consensus Estimates, while revenues fell short of the same. Though the streaming giant added 1.75 million paid subscribers globally during the quarter, the average revenue per membership declined 1% year over year.
Upcoming Earnings Releases
Investors interested in the media space are eagerly awaiting the earnings releases of some prominent industry players — Comcast Corporation (CMCSA - Free Report) , Sirius XM Holdings (SIRI - Free Report) , IMAX Corporation (IMAX - Free Report) and Cumulus Media (CMLS - Free Report) — which are set to report quarterly results on Apr 27.
Comcast is scheduled to report first-quarter 2023 results. The company’s top line in the to-be-reported quarter is expected to reflect a slowing broadband subscriber base due to the reversal of pandemic trends and increased competition from fixed wireless and fiber-based wireline networks. Additionally, Comcast’s NBCUniversal revenues are expected to have weakened from the drop in television viewership and stiff competition. The company expects its media and ad revenues to decline, partially offsetting the ongoing recovery of theme parks’ revenues. (Read more: Comcast to Report Q1 Earnings: What's in the Cards?)
Comcast has an Earnings ESP of -0.42% and a Zacks Rank #3 (Hold).
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for CMCSA’s revenues is pegged at $29.23 billion, indicating a 5.8% decrease from the year-ago quarter. The consensus estimate for the bottom line is pegged at 80 cents, implying a year-over-year decline of approximately 7%.
Sirius XM is set to report first-quarter 2023 results. The company’s first-quarter top line is likely to have been negatively impacted by a slowdown in ad spending and subscriber growth. Higher programming and content costs and royalty expenses are expected to have hurt profitability.
Also, the stock’s combination of a Zacks Rank #3 and an Earnings ESP of 0.00% makes surprise prediction difficult. The Zacks Consensus Estimate for Sirius XM’s revenues is pegged at $2.17 billion, suggesting a 0.6% decrease from the year-ago quarter’s reported figure. The consensus mark for earnings stands at 7 cents per share, 12.5% down from the year-ago quarter reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
IMAX is scheduled to report first-quarter 2023 results. The company’s to-be-reported quarter results are likely to benefit from the reopening of theatres, particularly in the United States. The recovery in the pace of theater system installations and higher IMAX maintenance sales are likely to have boosted revenues in the first quarter. The impressive performance of Ant-Man and the Wasp: Quantumania, Shazam! Fury of the Gods and John Wick: Chapter 4 is anticipated to have benefited IMAX in the to-be-reported quarter.
The company has an Earnings ESP of 0.00% and carries a Zacks Rank 3. The Zacks Consensus Estimate for first-quarter revenues is pegged at $78 million, suggesting an increase of 29.9% from the year-ago quarter's reported figure. The consensus mark for earnings stands at 13 cents per share, which indicates a strong improvement from the year-ago quarter’s loss of 14 cents.
Cumulus Media will report its first-quarter 2023 results. The company’s to-be-reported quarter results are likely to be negatively impacted by a weak advertising environment. For Cumulus Media, 2023 is an off-cycle year as the U.S. presidential elections will occur in 2024. This is likely to have posed another headwind for the first-quarter performance.
Also, the stock’s combination of a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes surprise prediction difficult. The Zacks Consensus Estimate for Cumulus Media’s revenues is pegged at $201.5 million, suggesting a 13.2% decrease from the year-ago quarter’s reported figure. The consensus mark for the bottom line indicates the loss to widen to $1.16 per share from 4 cents in the year-ago quarter.
Image: Bigstock
Media Stocks Q1 Earnings Due on Apr 27: CMCSA, SIRI & More
We believe that the financial performance of media companies in the first quarter of 2023 will depend on the industry dynamics under which these operate.
Companies with traditional media formats like cable TV and radio are struggling to retain customers amid the growing popularity of over-the-top (OTT) services. Moreover, softness in ad spending amid current macroeconomic challenges and recessionary concerns are hurting the top and bottom lines of traditional media players.
Meanwhile, OTT service providers are benefiting from the proliferation of mobile devices and the increased penetration of Internet services. The pandemic only accelerated the trend, wherein the majority of OTT players witnessed massive new subscriber additions.
However, there has been a shift in the trend in the post-pandemic era, with players now focusing on profitability rather than just adding new subscribers. Rising costs and the debt-ridden balance sheets of OTT players are raising questions about the growth dynamics and economics of video streaming.
Furthermore, certain players in the entertainment and event-providing space, which were battered by pandemic-led lockdown measures adopted worldwide, are likely to see strong recovery with the reopening of economies.
The first-quarter 2023 earnings cycle for media stocks has already started, with Netflix reporting mixed results last week, wherein earnings topped the Zacks Consensus Estimates, while revenues fell short of the same. Though the streaming giant added 1.75 million paid subscribers globally during the quarter, the average revenue per membership declined 1% year over year.
Upcoming Earnings Releases
Investors interested in the media space are eagerly awaiting the earnings releases of some prominent industry players — Comcast Corporation (CMCSA - Free Report) , Sirius XM Holdings (SIRI - Free Report) , IMAX Corporation (IMAX - Free Report) and Cumulus Media (CMLS - Free Report) — which are set to report quarterly results on Apr 27.
Comcast is scheduled to report first-quarter 2023 results. The company’s top line in the to-be-reported quarter is expected to reflect a slowing broadband subscriber base due to the reversal of pandemic trends and increased competition from fixed wireless and fiber-based wireline networks. Additionally, Comcast’s NBCUniversal revenues are expected to have weakened from the drop in television viewership and stiff competition. The company expects its media and ad revenues to decline, partially offsetting the ongoing recovery of theme parks’ revenues. (Read more: Comcast to Report Q1 Earnings: What's in the Cards?)
Comcast has an Earnings ESP of -0.42% and a Zacks Rank #3 (Hold).
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for CMCSA’s revenues is pegged at $29.23 billion, indicating a 5.8% decrease from the year-ago quarter. The consensus estimate for the bottom line is pegged at 80 cents, implying a year-over-year decline of approximately 7%.
Comcast Corporation Price and EPS Surprise
Comcast Corporation price-eps-surprise | Comcast Corporation Quote
Sirius XM is set to report first-quarter 2023 results. The company’s first-quarter top line is likely to have been negatively impacted by a slowdown in ad spending and subscriber growth. Higher programming and content costs and royalty expenses are expected to have hurt profitability.
Also, the stock’s combination of a Zacks Rank #3 and an Earnings ESP of 0.00% makes surprise prediction difficult. The Zacks Consensus Estimate for Sirius XM’s revenues is pegged at $2.17 billion, suggesting a 0.6% decrease from the year-ago quarter’s reported figure. The consensus mark for earnings stands at 7 cents per share, 12.5% down from the year-ago quarter reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sirius XM Holdings Inc. Price and EPS Surprise
Sirius XM Holdings Inc. price-eps-surprise | Sirius XM Holdings Inc. Quote
IMAX is scheduled to report first-quarter 2023 results. The company’s to-be-reported quarter results are likely to benefit from the reopening of theatres, particularly in the United States. The recovery in the pace of theater system installations and higher IMAX maintenance sales are likely to have boosted revenues in the first quarter. The impressive performance of Ant-Man and the Wasp: Quantumania, Shazam! Fury of the Gods and John Wick: Chapter 4 is anticipated to have benefited IMAX in the to-be-reported quarter.
The company has an Earnings ESP of 0.00% and carries a Zacks Rank 3. The Zacks Consensus Estimate for first-quarter revenues is pegged at $78 million, suggesting an increase of 29.9% from the year-ago quarter's reported figure. The consensus mark for earnings stands at 13 cents per share, which indicates a strong improvement from the year-ago quarter’s loss of 14 cents.
IMAX Corporation Price and EPS Surprise
IMAX Corporation price-eps-surprise | IMAX Corporation Quote
Cumulus Media will report its first-quarter 2023 results. The company’s to-be-reported quarter results are likely to be negatively impacted by a weak advertising environment. For Cumulus Media, 2023 is an off-cycle year as the U.S. presidential elections will occur in 2024. This is likely to have posed another headwind for the first-quarter performance.
Also, the stock’s combination of a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes surprise prediction difficult. The Zacks Consensus Estimate for Cumulus Media’s revenues is pegged at $201.5 million, suggesting a 13.2% decrease from the year-ago quarter’s reported figure. The consensus mark for the bottom line indicates the loss to widen to $1.16 per share from 4 cents in the year-ago quarter.
Cumulus Media, Inc. Price and EPS Surprise
Cumulus Media, Inc. price-eps-surprise | Cumulus Media, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.