Core Viewpoint - Fox (FOXA) has demonstrated strong financial performance and growth potential, particularly in its Television and Cable Networking segments, making it an attractive investment opportunity for 2025 [2][8]. Financial Performance - In Q3 fiscal 2025, Fox reported a 27% increase in total revenues and achieved the highest free cash flow in its history, exceeding $1.9 billion [3]. - The Super Bowl broadcast contributed over $800 million in advertising revenues, marking it as the most-watched telecast in U.S. history [3]. Segment Performance - Tubi, Fox's free streaming platform, experienced a 35% year-over-year revenue increase, with rising engagement and view time [4]. - The cable segment benefited from a 26% increase in ad revenues, bolstered by Fox News being the most-watched cable channel [4]. Growth Strategy - Fox's growth strategy centers on live content from its core brands: FOX News, FOX Sports, and the FOX Network, capitalizing on the rising demand for live programming [5]. - The company anticipates steady growth in affiliate fees, which will support long-term revenue growth [5]. Market Position - FOX News ranks as the second most trusted and top-rated news channel in the U.S., with FOX Nation gaining traction through 700 hours of original content [6]. Earnings Estimates - The Zacks Consensus Estimate for FOXA's 2025 earnings is $4.52 per share, reflecting a 31.78% year-over-year growth, with revenues projected at $16.11 billion, indicating a 15.24% increase [7]. - FOXA has consistently beaten earnings estimates over the past four quarters, with an average surprise of 25.97% [7]. Investment Outlook - Fox's strong fundamentals, record free cash flow, and momentum in streaming services position it well for continued growth and investor confidence in 2025 [8]. - The company currently holds a Zacks Rank 2 (Buy) and a Growth Score of B, indicating a favorable investment opportunity [9].

Core Viewpoint - Fox is set to launch its streaming service, FOX One, integrating its news, sports, and entertainment content into a dynamic platform, expected to go live in the fall before the NFL and college football seasons [1] Group 1 - FOX One will be a fully owned streaming service by Fox, consolidating various content under one platform [1] - The launch is strategically timed to coincide with the start of the NFL and college football seasons [1]

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]

Core Insights - Fox reported a revenue of $4.37 billion for the quarter ended March 2025, marking a 26.8% increase year-over-year and exceeding the Zacks Consensus Estimate by 5.30% [1] - The earnings per share (EPS) for the quarter was $1.10, slightly up from $1.09 in the same quarter last year, and surpassed the consensus EPS estimate by 18.28% [1] Financial Performance - Revenue breakdown shows Cable Network Programming at $1.64 billion, exceeding the estimated $1.53 billion, with an 11.1% year-over-year increase [4] - Television segment revenue reached $2.70 billion, surpassing the $2.57 billion estimate, reflecting a significant 39.5% increase year-over-year [4] - Other, Corporate and Eliminations segment reported $31 million, exceeding the estimate of $17.25 million, but showing a decline of 16.2% year-over-year [4] Revenue Components - Cable Network Programming's affiliate fee revenue was $1.14 billion, slightly above the $1.10 billion estimate, with a 2.8% year-over-year increase [4] - Advertising revenue in Cable Network Programming was $372 million, exceeding the $310.49 million estimate, representing a 25.7% increase year-over-year [4] - Television advertising revenue surged to $1.66 billion, surpassing the $1.55 billion estimate, with a remarkable 77.2% year-over-year growth [4] Stock Performance - Fox shares have returned +2.8% over the past month, compared to a +3.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Fox (FOXA) reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing a slight increase from $1.09 per share a year ago, indicating a positive earnings surprise of 18.28% [1][2] Financial Performance - The company achieved revenues of $4.37 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.30%, and reflecting a significant increase from $3.45 billion in the same quarter last year [2] - Over the last four quarters, Fox has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Fox shares have increased approximately 3.4% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $3.08 billion, and for the current fiscal year, it is $4.45 on revenues of $15.88 billion [7] - The trend of estimate revisions for Fox has been favorable leading up to the earnings release, which may influence future stock movements [5][6] Industry Context - The Broadcast Radio and Television industry, to which Fox belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

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].