Core Viewpoint - The comparison between Fox (FOXA) and Roku (ROKU) indicates that FOXA currently presents a better value opportunity for investors based on earnings outlook and valuation metrics [1][3][7] Valuation Metrics - FOXA has a forward P/E ratio of 10.68, while ROKU's forward P/E is significantly higher at 11,834.01 [5] - The PEG ratio for FOXA is 0.99, indicating a more favorable growth expectation compared to ROKU's PEG ratio of 214.07 [5] - FOXA's P/B ratio stands at 1.85, compared to ROKU's P/B ratio of 3.46, suggesting FOXA is more undervalued relative to its book value [6] Zacks Rank and Value Grades - FOXA holds a Zacks Rank of 2 (Buy), while ROKU has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for FOXA [3][7] - Based on valuation metrics, FOXA has a Value grade of B, whereas ROKU has a Value grade of D, further supporting FOXA as the superior investment choice [6][7]

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at 8:30 a.m. ET [1] - The financial results will be released at approximately 8:00 a.m. ET on the same day [1] - An archived version of the webcast will be available on the company's investor relations website [1] Group 2 - Fox Corporation produces and distributes news, sports, and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]

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **High Yield (HY) Telecom, Cable, and Media** sectors, highlighting the competitive landscape and investment needs that are affecting credit outlooks across these industries [11][67]. Core Insights and Arguments 1. **Cautious Outlook for HY Telecom and Cable**: The overall outlook for HY telecom and cable remains cautious due to intense competition and significant investment needs, which are expected to keep leverage elevated [11][67]. 2. **Media Sector Pressures**: The HY media sector faces secular pressures such as cord-cutting and macroeconomic uncertainties that may adversely impact advertising revenues this year [11][12]. 3. **Credit Spread Risks**: Risks to credit spreads are skewed to the downside, prompting recommendations for more defensive sector trades while identifying attractive relative-value buying opportunities [12][67]. 4. **CHTR HY/IG Differential**: Expectations for the CHTR HY/IG differential to decompress in 2025, with a recommendation to sell certain CHTR bonds while buying others to capitalize on this shift [14][17]. 5. **Debt Issuance and Leverage**: CHTR is projected to issue approximately $1.1 billion in net debt this year, with year-end 2025 pro forma net leverage expected to be around 4.25x [17]. 6. **Potential M&A Activity**: The call suggests that ATUS/CSCHLD might benefit from potential M&A activity, with recommendations to buy lower-dollar guaranteed notes [18][21]. 7. **SATS Opportunities**: SATS is highlighted for refinancing prospects and spectrum valuation, with specific trade recommendations for secured and unsecured notes [22][27]. 8. **LUMN's Mass Markets Segment**: A potential sale of LUMN's Mass Markets segment is seen as a catalyst for the company, with a valuation of approximately $6.6 billion [31][30]. 9. **SBGI vs. GTN Leverage**: SBGI's net leverage is expected to increase more significantly than GTN's in 2025, with specific trade recommendations to sell SBGI and buy GTN bonds [37][41]. 10. **CCO's High Leverage Risks**: CCO's high leverage presents downside risks, with expectations for spreads to widen due to macroeconomic uncertainties and investor fatigue [46][42]. Additional Important Insights - **Consolidation Trends**: The call notes that consolidation and M&A could increase as telecom and cable players seek to remain competitive and profitable [21]. - **Market Pricing Dynamics**: The market is currently pricing in hypothetical scenarios for various companies, indicating a complex landscape for credit assessments [72][70]. - **Strategic Uncertainties in Media**: The media sector is facing strategic uncertainties while waiting for direct-to-consumer (DTC) gains to outpace pressures from traditional linear models [73][74]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the HY Telecom, Cable, and Media sectors.

Core Insights - The article compares Fox (FOXA) and Netflix (NFLX) to determine which stock offers better value for investors right now [1] Valuation Metrics - Both FOXA and NFLX currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - FOXA has a forward P/E ratio of 12.87, significantly lower than NFLX's forward P/E of 39.19 [5] - FOXA's PEG ratio is 1.25, while NFLX's PEG ratio stands at 2, suggesting FOXA is more reasonably priced relative to its expected EPS growth [5] - FOXA has a P/B ratio of 2.21, compared to NFLX's P/B ratio of 16.65, indicating FOXA is undervalued relative to its book value [6] - Based on these valuation metrics, FOXA holds a Value grade of B, whereas NFLX has a Value grade of F, suggesting FOXA is the superior value option at this time [6]

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]

Core Insights - Fox Corporation reported strong second-quarter fiscal 2025 results with adjusted earnings per share of 96 cents, exceeding the Zacks Consensus Estimate by 47.69% and reflecting a year-over-year increase of 182.4% [1] - Total revenues for the quarter rose 20% year over year to $5.08 billion, surpassing the consensus mark by 3.9% [2] Revenue Breakdown - Affiliate fees, accounting for 37.4% of total revenues, increased by 6.3% to $1.9 billion, driven by 9% growth in the Television segment and 4.4% growth in the Cable Network Programming segment [2] - Advertising revenues, which made up 47.7% of total revenues, grew by 21% year over year to $2.42 billion, influenced by higher political advertising, increased MLB postseason ratings, NFL pricing, and digital growth from the Tubi AVOD service [3] - Other revenues surged 69.9% year over year to $756 million, representing 14.9% of total revenues [3] Segment Performance - Cable Network Programming revenues, constituting 42.6% of total revenues, rose 30.6% year over year to $2.16 billion, with advertising revenues growing by 32.2% [4] - Television revenues, which accounted for 58.3% of total revenues, increased by 16.5% year over year to $2.96 billion, with advertising revenues jumping 18.6% [5] Operating Performance - Operating expenses increased by 11.3% year over year to $3.77 billion, but as a percentage of revenues, they contracted by 580 basis points to 74.4% [6] - Selling, general & administrative (SG&A) expenses rose 6.1% year over year to $525 million, with SG&A as a percentage of revenues contracting by 140 basis points to 10.3% [7] - Total adjusted EBITDA surged 123.1% year over year to $781 million, with an adjusted EBITDA margin expanding by 710 basis points to 15.4% [7] Balance Sheet - As of December 31, 2024, Fox had $3.32 billion in cash and cash equivalents, down from $4.05 billion as of September 30, 2024, with long-term debt standing at $6.6 billion [8] Stock Performance - Fox currently holds a Zacks Rank 2 (Buy), with shares gaining 65.4% over the past year compared to the Zacks Consumer Discretionary sector's growth of 14.7% [9]

Revenue Growth - For the three months ended December 31, 2024, total revenues increased by $844 million or 20% compared to the same period in 2023, driven by higher affiliate fee, advertising, and other revenues [97]. - For the six months ended December 31, 2024, total revenues increased by $1.2 billion or 16% compared to the same period in 2023, with significant contributions from political advertising revenue [102]. - Total revenues increased by $844 million or 20% to $5,078 million for the three months ended December 31, 2024, compared to $4,234 million in 2023 [110]. - Total revenues for the six months ended December 31, 2024, increased by $1,201 million or 16% to $8,642 million compared to $7,441 million in 2023 [110]. Advertising Revenue - Advertising revenue rose by $420 million or 21% for the three months ended December 31, 2024, primarily due to the impact of the 2024 presidential elections and increased digital growth from the Tubi AVOD service [99]. - Television segment revenues increased by $419 million or 16% for the three months ended December 31, 2024, primarily due to higher advertising revenue from political advertising and sports programming [117]. Net Income - Net income for the three months ended December 31, 2024, increased by $273 million, reaching $388 million, compared to $115 million in the same period of 2023 [107]. - The increase in net income for the six months ended December 31, 2024, was $690 million, totaling $1.22 billion, compared to $530 million in the same period of 2023 [107]. - The company reported a net income of $388 million for the three months ended December 31, 2024, compared to $115 million in the same period of 2023, marking a year-over-year increase of 237.4% [128]. Operating Expenses - Operating expenses increased by $383 million or 11% for the three months ended December 31, 2024, mainly due to higher sports programming rights amortization and production costs [100]. - Selling, general and administrative expenses rose by $30 million or 6% for the three months ended December 31, 2024, attributed to higher employee and marketing costs [101]. - Operating expenses in the Cable Network Programming segment rose by $412 million or 44% due to increased sports programming rights and production costs [113]. EBITDA - Adjusted EBITDA surged by $431 million or 123% to $781 million for the three months ended December 31, 2024, compared to $350 million in 2023 [111]. - Adjusted EBITDA for the six months ended December 31, 2024, was $1,829 million, up from $1,219 million in the same period of 2023, reflecting a growth of 50.1% [128]. - Cable Network Programming segment EBITDA increased by $93 million or 16% for the three months ended December 31, 2024, attributed to revenue growth despite higher operating expenses [113]. - Television segment EBITDA improved by $343 million for the three months ended December 31, 2024, reflecting revenue increases offset by higher expenses [118]. Cash Flow and Investments - As of December 31, 2024, the company had approximately $3.3 billion in cash and cash equivalents, along with an unused $1.0 billion revolving credit facility [130]. - Net cash used in operating activities decreased to $204 million for the six months ended December 31, 2024, from $535 million in the same period of 2023, indicating improved operational efficiency [134]. - Net cash used in investing activities increased to $240 million for the six months ended December 31, 2024, compared to $143 million in the same period of 2023, primarily due to increased investments [135]. - The company experienced a net cash outflow of $553 million from financing activities for the six months ended December 31, 2024, compared to a net inflow of $528 million in the same period of 2023, largely due to the issuance of $1.25 billion in senior notes [136]. Dividends and Acquisitions - The company declared a semi-annual dividend of $0.27 per share, payable on March 26, 2025, with a record date of March 5, 2025 [137]. - The company is actively evaluating potential acquisitions and dispositions of certain businesses and assets, which may involve significant cash or securities [133].

Financial Performance - Fox Corporation reported total quarterly revenues of $5.08 billion, an increase of $844 million or 20% year-over-year[3]. - Net income for the quarter was $388 million, compared to $115 million in the prior year quarter, representing a significant increase[4]. - Adjusted EBITDA reached $781 million, an increase of $431 million or 123% from the prior year quarter[4]. - Advertising revenues rose by 21% to $2.42 billion, primarily due to higher political advertising and increased digital growth from the Tubi AVOD service[3]. - Other revenues surged by 70% to $756 million, mainly due to higher sports sublicensing revenues[3]. - Adjusted Net Income for the quarter was $442 million, with an Adjusted EPS of $0.96, up from $165 million and $0.34 in the prior year[28]. - Adjusted EBITDA for the three months ended December 31, 2024, was $781 million, compared to $350 million for the same period in 2023, representing a significant increase of 123.4%[34]. Revenue Breakdown - Affiliate fee revenues increased by 6% to $1.9 billion, driven by 9% growth in the Television segment and 4% growth in the Cable Network Programming segment[3]. - The Cable Network Programming segment reported revenues of $2.17 billion, an increase of $507 million or 31% year-over-year[8]. - The Television segment generated revenues of $2.96 billion, an increase of $419 million or 16% from the prior year quarter[12]. Shareholder Returns - The company declared a dividend of $0.27 per Class A and Class B share, payable on March 26, 2025[15]. - As of December 31, 2024, Fox Corporation repurchased approximately $5.1 billion of its Class A common stock and $1 billion of its Class B common stock, with a remaining authorization of $900 million[15]. - The company engaged in share repurchases amounting to $500 million during the six months ended December 31, 2024[24]. Assets and Liabilities - Total assets increased to $23,022 million as of December 31, 2024, compared to $21,972 million as of June 30, 2024, reflecting a growth of approximately 4.8%[22]. - Cash and cash equivalents decreased to $3,322 million from $4,319 million, marking a decline of about 23.1%[24]. - Total current liabilities rose to $3,297 million as of December 31, 2024, compared to $2,952 million as of June 30, 2024, indicating an increase of approximately 11.7%[22]. - The company reported a net decrease in cash and cash equivalents of $997 million for the six months ended December 31, 2024[24]. - The company’s retained earnings increased to $3,949 million as of December 31, 2024, up from $3,139 million as of June 30, 2024[22]. Cash Flow - Net cash used in operating activities for the six months ended December 31, 2024, was $(204) million, an improvement from $(535) million in the same period of 2023[24].