Core Insights - Fox Corporation (FOXA) reported third-quarter fiscal 2025 adjusted earnings per share of $1.10, exceeding the Zacks Consensus Estimate by 18.28% and reflecting a year-over-year increase of 0.9% [1] - Revenues for the quarter rose 26.8% year over year to $4.37 billion, surpassing the consensus mark by 5.3% [1] - The company experienced significant growth in advertising revenues, which increased 64.9% year over year to $2.03 billion, driven by Super Bowl LIX and digital growth from the Tubi AVOD service [2] Revenue Breakdown - Affiliate fees, accounting for 45.9% of total revenues, grew 3.5% year over year to $2 billion, supported by 4% growth in the Television segment and 3% in the Cable Network Programming segment [1] - Cable Network Programming revenues increased 11.1% year over year to $1.63 billion, with advertising revenues growing 25.7% [4] - Television revenues rose 39.5% year over year to $2.70 billion, with advertising revenues jumping 77.2% [5] Operating Performance - Operating expenses increased 44.6% year over year to $2.96 billion, with expenses as a percentage of revenues expanding 840 basis points to 67.8% [6] - Selling, general & administrative (SG&A) expenses rose 8% year over year to $551 million, but as a percentage of revenues, they contracted 220 basis points to 12.6% [7] - Total adjusted EBITDA decreased 3.9% year over year to $856 million, with an adjusted EBITDA margin contracting 630 basis points to 19.6% [7] Financial Position - As of March 31, 2025, Fox had $4.81 billion in cash and cash equivalents, up from $3.32 billion as of December 31, 2024 [8] - The company's long-term debt stood at $600 million as of March 31, 2025 [8] Earnings Estimates - The Zacks Consensus Estimate for FOXA's 2025 earnings is currently $4.45 per share, indicating a year-over-year growth of 29.74% despite a 0.6% decline over the past 30 days [9] - The consensus estimate for FOXA's 2025 revenues is $15.88 billion, reflecting a year-over-year growth of 13.56% [10] Stock Performance - Following the strong third-quarter results, FOXA shares rose 6.33% in pre-market trading, with a year-to-date gain of 3.5% compared to the Zacks Consumer Discretionary sector's growth of 0.2% [3]

Revenue Growth - For the three months ended March 31, 2025, total revenues increased by $924 million or 27% compared to the same period in 2024, driven by higher affiliate fee, advertising, and other revenues[92]. - For the nine months ended March 31, 2025, total revenues increased by $2.1 billion or 20% compared to the same period in 2024, attributed to higher affiliate fee, advertising, and other revenues[96]. - Total revenues for the three months ended March 31, 2025, increased by $924 million or 27% to $4,371 million compared to $3,447 million in the same period of 2024[105]. - For the nine months ended March 31, 2025, total revenues increased by $2,125 million or 20% to $13,013 million compared to $10,888 million in the same period of 2024[105]. Advertising Revenue - Advertising revenue surged by $801 million or 65% for the three months ended March 31, 2025, primarily due to approximately $700 million from the broadcast of Super Bowl LIX[93]. - The increase in advertising revenue for the nine months ended March 31, 2025, was $1.4 billion or 30%, largely due to approximately $850 million from sports content and political advertising[96]. - Television segment revenues increased by $766 million or 40% for the three months ended March 31, 2025, primarily due to higher advertising revenue from the broadcast of Super Bowl LIX[111]. - Television segment revenues increased by $1.4 billion or 22% for the nine months ended March 31, 2025, driven by higher advertising revenue related to sports content and political advertising[114]. Operating Expenses - Operating expenses rose by $915 million or 45% for the three months ended March 31, 2025, mainly due to increased sports programming rights amortization and production costs related to Super Bowl LIX[94]. - Operating expenses for the nine months ended March 31, 2025, increased by $1.5 billion or 20%, primarily due to higher sports programming rights and production costs[97]. - Selling, general and administrative expenses rose by $93 million or 6% for the nine months ended March 31, 2025, mainly due to higher employee costs[98]. - Operating expenses for the Cable Network Programming segment increased by $567 million or 27% for the nine months ended March 31, 2025, primarily due to higher sports programming rights amortization[109]. Net Income - Net income decreased by $350 million or 50% for the three months ended March 31, 2025, primarily due to changes in the fair value of investments in equity securities[101]. - Net income attributable to Fox Corporation stockholders increased by $364 million or 31% for the nine months ended March 31, 2025, compared to the same period in 2024[101]. - The company reported a net income of $354 million for the three months ended March 31, 2025, compared to $704 million in the same period of 2024, indicating a decrease of approximately 49.7%[123]. Cash Flow and Financial Position - As of March 31, 2025, the company had approximately $4.8 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility[125]. - Net cash provided by operating activities for the nine months ended March 31, 2025, was $1,811 million, an increase from $941 million in 2024, marking a growth of approximately 92.7%[128]. - Net cash used in investing activities increased to $407 million for the nine months ended March 31, 2025, compared to $324 million in 2024, primarily due to acquisitions[129]. Dividends and Strategic Initiatives - The company declared a semi-annual dividend of $0.27 per share during the three months ended March 31, 2025[131]. - The company has evaluated potential acquisitions and dispositions, indicating ongoing strategic growth initiatives[127]. Credit Ratings and Compliance - The company’s credit ratings as of March 31, 2025, were Baa2 from Moody's and BBB from Standard & Poor's, both with a stable outlook[133]. - The company anticipates continued compliance with all covenants under its revolving credit facility as of March 31, 2025[125].

Financial Performance - Fox Corporation reported total quarterly revenues of $4.37 billion, an increase of $924 million or 27% from the prior year quarter[3]. - Advertising revenues increased by 65% to $2.04 billion, primarily due to Super Bowl LIX and digital growth from the Tubi AVOD service[3]. - Quarterly net income was $354 million, down from $704 million in the prior year quarter, with adjusted net income of $507 million[4]. - Adjusted EBITDA for the quarter was $856 million, a decrease of $35 million or 4% from the prior year quarter[4]. - Cable Network Programming segment revenues increased by 11% to $1.64 billion, with advertising revenues up 26%[9]. - Television segment revenues rose by 40% to $2.70 billion, driven by a 77% increase in advertising revenues[12]. - Adjusted net income for the three months ended March 31, 2025, was $507 million, compared to $520 million for the same period in 2024, reflecting a decrease of 2.5%[28]. Shareholder Value - The company repurchased approximately $250 million of its Class A common stock during the quarter, with a total repurchase of $5.35 billion to date[15]. - The company repurchased shares worth $750 million during the nine months ended March 31, 2025[24]. - Fox Corporation maintains a robust balance sheet and is positioned to drive long-term value for shareholders[4]. Assets and Liabilities - Total assets increased to $23,367 million as of March 31, 2025, up from $21,972 million on June 30, 2024, representing a growth of 6.34%[22]. - Total current liabilities rose to $3,567 million as of March 31, 2025, compared to $2,952 million on June 30, 2024, marking an increase of 20.8%[22]. - Total equity increased to $11,638 million as of March 31, 2025, up from $10,814 million on June 30, 2024, indicating a growth of 7.6%[22]. - The company’s borrowings remained stable at $6,601 million for non-current liabilities, with a slight increase from $6,598 million on June 30, 2024[22]. Cash Flow - Cash and cash equivalents at the end of the period were $4,815 million, an increase of 11.5% from $4,319 million at the beginning of the year[24]. - The company reported a net cash provided by operating activities of $1,811 million for the nine months ended March 31, 2025, compared to $941 million for the same period in 2024, an increase of 92.7%[24]. Expenses - The company experienced higher expenses due to increased sports programming rights amortization and production costs related to Super Bowl LIX[4].

Core Viewpoint - Fox Corporation (FOXA) is expected to report its third-quarter fiscal 2025 results on May 12, with earnings estimated at 93 cents per share, reflecting a 14.68% decline year-over-year, while revenues are projected to grow by 20.42% to $4.15 billion [1]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for FOXA's earnings is 93 cents per share, which is an increase of 3 cents over the past 30 days [1]. - The revenue consensus is set at $4.15 billion, indicating a 20.42% growth compared to the same quarter last year [1]. Group 2: Recent Performance and Trends - FOXA has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 24.20% [2]. - The company's advertising revenues rose by 21% year-over-year to $2.42 billion in the second quarter of fiscal 2025, which is expected to positively impact the third quarter results [3]. - The Super Bowl broadcast in February was sold out at record-high pricing, contributing to the positive momentum in sports broadcasting for FOXA [4]. - The NEWS division has shown strong performance, with increased viewership translating into significant advertising revenue growth [5]. Group 3: Cost Considerations - FOXA faced higher expenses in the second quarter of fiscal 2025 due to increased sports programming rights amortization, production costs, and digital costs associated with Tubi, which may pressure profit margins in the upcoming quarter [6]. Group 4: Earnings Prediction Model - According to the Zacks model, FOXA has an Earnings ESP of -1.08% and a Zacks Rank of 2 (Buy), indicating a lower likelihood of an earnings beat compared to other stocks [7].

Wall Street analysts expect Fox (FOXA) to post quarterly earnings of $0.93 per share in its upcoming report, which indicates a year-over-year decline of 14.7%. Revenues are expected to be $4.14 billion, up 20.2% from the year-ago quarter. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Before a company reveals its earnings, it is vita ...

Core Insights - The Zacks Broadcast Radio and Television industry is experiencing challenges due to cord-cutting, but companies like Netflix, Gray Media, Fox Corporation, and TEGNA are benefiting from increased digital content consumption and diverse offerings [1][2]. Industry Overview - The industry includes companies providing entertainment, sports, news, and musical content across various platforms, generating revenue through program sales, advertising, and subscriptions [2]. - There is a shift towards a variable cost model to enhance flexibility and reduce fixed costs amid evolving market dynamics [2]. Trends - Companies are diversifying content for OTT services to adapt to changing consumer preferences, which is expected to boost ad revenues [3]. - The rise in digital viewing is driving demand for tailored content, leveraging AI and machine learning for user engagement [4]. - The macroeconomic landscape, including high inflation and competition from tech companies, is impacting advertising budgets and revenue growth [5]. - The introduction of low-priced "skinny bundles" is changing revenue dynamics, potentially dampening top-line performance [6]. Performance Metrics - The industry ranks 41 in the Zacks Industry Rank, indicating it is in the top 17% of over 250 industries, with a positive earnings outlook [7][9]. - The industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500, gaining 54.4% over the past year compared to 2% and 1.5% respectively [11]. - The current EV/EBITDA ratio for the industry is 15.35X, slightly above the S&P 500's 15.19X [14]. Company Highlights - **Fox Corporation**: Demonstrated strong financial momentum with a 20% revenue growth and record EBITDA of $781 million, while also expanding its audience share and attracting new advertisers [17][18]. - **TEGNA**: Focused on modernization and technology deployment, targeting $90-$100 million in annualized savings, with a strong balance sheet and digital transformation initiatives [22][24]. - **Netflix**: Achieved first-quarter revenues of $10.54 billion, up 12.5% year over year, with a growing subscriber base and ambitious revenue targets [27][28]. - **Gray Media**: Positioned to capitalize on market-leading stations and diversified revenue streams, with successful partnerships in local sports and a focus on reducing debt [31][35].

Group 1 - Fox Corporation will discuss its third quarter fiscal 2025 financial results via a live audio webcast on May 12, 2025, starting at 8:30 a.m. ET [1] - The financial results will be released at approximately 8:00 a.m. ET on the same day [1] - An archived version of the webcast will be available on the company's investor relations website [1] Group 2 - Fox Corporation produces and distributes news, sports, and entertainment content through brands such as FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations, and Tubi Media Group [2] - The company holds cultural significance with consumers and commercial importance for distributors and advertisers [2] - Fox Corporation aims to leverage its strengths and invest in new initiatives to enhance its offerings and consumer relationships [2]

Market Overview - U.S. stock markets experienced a tumultuous first quarter of 2025 due to uncertainty surrounding the Trump administration's tariffs and trade policies, elevated inflation rates, and the Fed's hawkish stance on interest rates [1] - Growth sectors such as consumer discretionary, technology, communication services, and cryptocurrencies faced significant declines, contrasting with the previous year's performance [2] Company Highlights Royal Caribbean Cruises Ltd. (RCL) - RCL is benefiting from strong cruising demand and robust booking trends, with optimism regarding private destinations as a key growth driver [7][8] - Expected revenue and earnings growth rates for the current year are 9% and 26.7%, respectively, with a recent 0.2% improvement in the Zacks Consensus Estimate for earnings [8] Ralph Lauren Corp. (RL) - RL is leveraging strong brand equity and a diversified growth strategy, with revenue growth driven by a strong direct-to-consumer channel [9][10] - Expected revenue and earnings growth rates for the current year are 3.7% and 13.5%, respectively, with a 4.9% improvement in the Zacks Consensus Estimate for earnings [11] Fox Corp. (FOXA) - FOXA is experiencing growth from rising affiliate fees and digital monetization, particularly in its news and sports segments [12][13] - Expected revenue and earnings growth rates for the current year are 13.4% and 28.3%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings [14] News Corp. (NWSA) - NWSA is benefiting from growth in Digital Real Estate Services, Book Publishing, and Dow Jones segments, with strategic acquisitions enhancing its revenue streams [15][16] - Expected revenue and earnings growth rates for the current year are -13.6% and 41.4%, respectively, with an 8.8% improvement in the Zacks Consensus Estimate for earnings [17] Sportradar Group AG (SRAD) - SRAD provides sports data services for the sports betting and media industries, offering critical software and content to various stakeholders [18][19] - Expected revenue and earnings growth rates for the current year are 16.4% and over 100%, respectively, with a 10.3% improvement in the Zacks Consensus Estimate for earnings [20]

Group 1 - Fox Corporation's CFO Steve Tomsic will participate in the Barclays Communications and Content Symposium on February 25, 2025, at approximately 10:25am Eastern Time [1] - A live and archived webcast of the presentation will be available on Fox Corporation's investor website [1] Group 2 - Fox Corporation produces and distributes news, sports, and entertainment content through brands such as FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations, and Tubi Media Group [2] - The company holds cultural significance with consumers and commercial importance for distributors and advertisers [2] - Fox Corporation aims to engage and inform audiences while developing deeper consumer relationships and creating compelling product offerings [2] - The company has a strong track record in the news, sports, and entertainment industry, which shapes its strategy to capitalize on existing strengths and invest in new initiatives [2]

Core Insights - Fox Corporation reported over $800 million in gross revenue from advertising sales for Super Bowl LIX, marking record pricing for the sold-out event [1][2] - Super Bowl LIX achieved a record-setting average audience of 127.7 million viewers, a 3% increase from the previous year's 123.7 million viewers [3] - The event peaked at 137.7 million viewers during the second quarter, according to Nielsen Media Research [3] FOX Sports Super Bowl LIX Highlights - The pregame coverage averaged 23.4 million viewers, the highest for a Super Bowl pregame starting at 1:00 PM on record [3] - The pre-kick portion averaged 82.5 million viewers, up 9% from last year's 75.8 million viewers [3] - The Apple Music Super Bowl Halftime Show featuring Kendrick Lamar drew an average of 133.5 million viewers, a 3% increase from the previous year [3] Tubi Super Bowl LIX Highlights - Tubi's simulcast of the Super Bowl broke streaming records with a peak of 15.5 million concurrent viewers and an average minute audience of 13.6 million [3] - Tubi recorded 24 million unique viewers accessing the platform during game day programming [3] - The platform utilized FOX's advanced livestreaming operation to deliver a high-quality 4K live stream with minimal latency [3] About Fox Corporation - Fox Corporation produces and distributes news, sports, and entertainment content through brands like FOX News Media, FOX Sports, and Tubi Media Group [2] - The company aims to engage audiences and develop consumer relationships while capitalizing on existing strengths and investing in new initiatives [2]