With quarterly earnings nearly coming to an end, the communications services sector was in focus as the Wall Street assessed earnings of companies including Walt Disney (DIS) and Warner Bros. Discovery (WBD).
Quarter-to-date, the communications services sector (NYSEARCA:XLC) is trading 0.8% lower, almost similar to the SPY downturn of over 0.4%.
In this week’s earnings recap, 6 tickers reported results, out of which three companies reported an earnings beat and three reported a miss. On the revenue side, two companies exceeded revenue estimates, while four companies trailed estimates.
Below are the latest quarterly reports from some of the key players, which reported results this week:
The Walt Disney Company (DIS) wrapped its worst day in 18 months on Tuesday, sliding 9.5% as investor attention to slipping Entertainment revenue and streaming subscribers outweighed some healthy profit highlights in its fiscal second quarter report.
Warner Bros. Discovery (WBD) fell short of consensus estimates with its Q1 earnings report. The New York-based company posted a revenue fell of 7% to $9.96 billion to miss the consensus mark by $260 million, while sales from the Studios segment were down 13%.
Similarly, Electronic Arts (EA) also disappointed investors with its fourth-quarter earnings, as bookings slid even more than expected year-over-year and the video game publisher offered light guidance for bookings in the coming year. The stock slipped 5% in immediate post-market reaction to its Q4 earnings.
So far this quarter, 18 out of 444 companies that reported results are part of the communications services sector.
At the industry level, seven Media, two Diversified Telecommunications Services, five Entertainment, three Interactive Media and Services and one Wireless Telecommunication Services reported earnings this quarter.
Almost 67% of the S&P 500 communication services sector companies that have reported results so far this quarter have recorded EPS beat, and 33% of companies reported a miss. In terms of revenue, 50% of the companies trailed estimates, while 50% of companies beat on the top line.
For the upcoming week, notable communication services names scheduled to report results include Baidu (BIDU), Take-Two Interactive Software (TTWO) and Sea (SE).