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].

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]