Global talent agency and entertainment company Endeavor (NYSE:EDR) will be reporting results tomorrow before market open. Here’s what to expect.
Endeavor missed analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $2.03 billion, up 66.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Endeavor a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Endeavor’s revenue to decline 3.7% year on year to $1.52 billion, a reversal from the 25.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Endeavor has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Endeavor’s peers in the media segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Disney delivered year-on-year revenue growth of 4.8%, meeting analysts’ expectations, and News Corp reported a revenue decline of 13.5%, topping estimates by 3.1%. Disney traded down 1% following the results while News Corp was also down 1.2%.
Read our full analysis of Disney’s results here and News Corp’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the media stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Endeavor is down 1.4% during the same time and is heading into earnings with an average analyst price target of $28.14 (compared to the current share price of $30.88).
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