FOX (NASDAQ:FOX) Releases Earnings Results, Beats Estimates By $0.33 EPS

FOX (NASDAQ:FOX) issued its quarterly earnings data on Monday. The company reported $1.32 earnings per share for the quarter, beating the consensus estimate of $0.99 by $0.33, FiscalAI reports. FOX had a return on equity of 18.14% and a net margin of 11.41%.The business had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.78 billion.

Here are the key takeaways from FOX’s conference call:

• Record quarter: Fox reported $4.0B revenue and adjusted EBITDA of $954M (up 11%), adjusted EPS of $1.32 (up 20%), and generated $1.77B of free cash flow while continuing sizable share buybacks.
• Digital momentum: Fox One subscriber additions and unexpectedly low churn boosted distribution revenue and helped stabilize overall subscriber declines, while Tubi grew revenue 23%, view time 19% and was near break-even in the quarter.
• Audience and advertising strength from news and sports: Fox News hit its highest Q3 ad revenue ever and is the top cable network (CPMs up >45%), and sports franchises (World Baseball Classic, MLB, IndyCar, NFL) posted strong ratings with Fox adding two national NFL games and preparing for an EBITDA-accretive FIFA World Cup window.
• Headline advertising decline and segment pressures: Total advertising was down 24% year-over-year driven by the lapping of Super Bowl LIX, TV distribution was roughly flat (down 1%), and cable expenses rose due to higher sports rights amortization—factors that temper near-term comparables.

FOX Stock Up 1.4%

Shares of FOX stock traded up $0.80 during trading hours on Monday, hitting $57.40. 321,237 shares of the company’s stock traded hands, compared to its average volume of 1,600,813. The stock’s fifty day simple moving average is $54.31 and its two-hundred day simple moving average is $58.24. The company has a quick ratio of 2.44, a current ratio of 2.78 and a debt-to-equity ratio of 0.60. The stock has a market cap of $24.42 billion, a price-to-earnings ratio of 13.80, a PEG ratio of 6.93 and a beta of 0.54. FOX has a 12-month low of $48.38 and a 12-month high of $68.18.

More FOX News

Here are the key news stories impacting FOX this week:

• Positive Sentiment: Fox reported adjusted earnings of $1.32 per share, ahead of estimates, with revenue of $3.99 billion also topping forecasts. Investors are likely encouraged by the company’s ability to outperform despite a tough comparison. Article Title
• Positive Sentiment: The company said advertising strength in sports, news and Tubi helped offset the absence of Super Bowl broadcasting, suggesting core businesses are still performing well. Article Title
• Positive Sentiment: Fox also said distribution revenue rose 3% and cable network programming grew 5%, which could support confidence in the company’s underlying cash flow. Article Title
• Positive Sentiment: Management highlighted new NFL rights and gearing up for the World Cup, both of which could boost future viewership and advertising revenue. Article Title
• Neutral Sentiment: Fox’s revenue fell from a year ago because it did not broadcast the Super Bowl this quarter, making the decline largely a comparison issue rather than a sign of weakening demand. Article Title

Wall Street Analyst Weigh In

Several research firms have recently issued reports on FOX. Wells Fargo & Company lowered FOX from a “strong-buy” rating to a “hold” rating in a report on Thursday, February 5th. Zacks Research cut shares of FOX from a “strong-buy” rating to a “hold” rating in a report on Thursday, February 5th. Finally, Bank of America reiterated an “underperform” rating and set a $45.00 price objective (down from $80.00) on shares of FOX in a research note on Wednesday, February 25th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $75.00.

Insider Buying and Selling at FOX

In other news, COO John Nallen sold 216,806 shares of the business’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $57.68, for a total value of $12,505,370.08. Following the completion of the transaction, the chief operating officer owned 362,206 shares in the company, valued at $20,892,042.08. The trade was a 37.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Lachlan K. Murdoch sold 637,752 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $58.20, for a total value of $37,117,166.40. Following the sale, the chief executive officer directly owned 152 shares in the company, valued at $8,846.40. This trade represents a 99.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,586,871 shares of company stock worth $91,893,926. Company insiders own 23.06% of the company’s stock.

Institutional Trading of FOX

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Brown Brothers Harriman & Co. grew its position in shares of FOX by 336.9% during the third quarter. Brown Brothers Harriman & Co. now owns 616 shares of the company’s stock worth $35,000 after purchasing an additional 475 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of FOX by 95.1% in the first quarter. Geneos Wealth Management Inc. now owns 1,442 shares of the company’s stock worth $76,000 after buying an additional 703 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in FOX by 130.2% during the second quarter. EverSource Wealth Advisors LLC now owns 2,300 shares of the company’s stock valued at $119,000 after acquiring an additional 1,301 shares in the last quarter. Captrust Financial Advisors bought a new stake in FOX in the 2nd quarter valued at $203,000. Finally, NewEdge Advisors LLC purchased a new stake in FOX in the 1st quarter worth $224,000. 26.41% of the stock is owned by hedge funds and other institutional investors.

About FOX

Fox Corporation (NASDAQ:FOX) is a U.S.-based media company that operates television broadcast, news and sports businesses. The company traces its contemporary structure to the 2019 reorganization that followed the sale of certain entertainment assets to The Walt Disney Company; Fox Corporation retained a portfolio centered on the Fox Broadcasting Company, Fox Television Stations, Fox News Media and Fox Sports. Over time the company has expanded its digital footprint through acquisitions and direct-to-consumer services, building a mix of linear and streaming distribution.

FOX’s core activities include the creation, aggregation and distribution of television programming and live sports, the operation of national cable news and business networks, and the ownership and operation of local broadcast stations.