Core Viewpoint - Fox Corporation reported a mixed performance in its fourth-quarter fiscal 2024 earnings, with adjusted earnings per share beating estimates but revenues slightly missing consensus expectations [2][3]. Financial Performance - Adjusted earnings per share for Q4 fiscal 2024 were 90 cents, exceeding the Zacks Consensus Estimate by 8.43% and reflecting a year-over-year increase of 2.3% [2]. - Total revenues for the quarter were $3.09 billion, a 2% increase year-over-year, but fell short of the consensus mark by 0.29% [2]. - Affiliate fees, which constitute 60.1% of total revenues, rose 5% to $1.86 billion, primarily driven by a 9% growth in the Television segment [2]. - Advertising revenues, accounting for 32.6% of total revenues, decreased by 0.1% year-over-year to $1 billion, largely due to the absence of major events like the Super Bowl and FIFA Men's World Cup [2]. - Other revenues, making up 7.3% of total revenues, declined 10.7% year-over-year to $226 million [2]. Segment Performance - Cable Network Programming revenues increased by 2% year-over-year to $1.44 billion, with advertising revenues and affiliate fees rising by 2.5% and 2%, respectively [3]. - Television revenues grew by 1.8% year-over-year to $1.6 billion, with affiliate fees increasing by 9% year-over-year, while advertising revenues declined by 1.3% [3]. Operating Metrics - Operating expenses rose by 0.3% year-over-year to $1.78 billion, with operating expenses as a percentage of revenues contracting by 90 basis points to 57.7% [4]. - Total adjusted EBITDA increased by 5.2% year-over-year to $773 million, with an adjusted EBITDA margin expanding by 80 basis points to 25% [4]. - Cable Network Programming EBITDA rose by 20.2% year-over-year to $703 million, while Television reported an adjusted EBITDA of $148 million, down 34.8% year-over-year [4]. Balance Sheet - As of June 30, 2024, Fox had $4.32 billion in cash and cash equivalents, up from $3.79 billion as of March 31, 2024 [5]. - Long-term debt stood at $7.2 billion as of June 30, 2024 [5]. Market Outlook - Estimates for Fox have trended downward, with a consensus estimate shift of -12.6% over the past month [7]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [9]. - Fox's overall VGM Score is C, with a subpar Growth Score of D and a Momentum Score of F, but a value grade of B, placing it in the top 40% for this investment strategy [8]. Industry Comparison - Fox is part of the Zacks Broadcast Radio and Television industry, where Roku has gained 20.3% over the past month, reporting revenues of $968.18 million for the quarter ended June 2024, reflecting a year-over-year change of +14.3% [10].
Why Is Fox (FOXA) Up 5% Since Last Earnings Report?