Summary of Fox (NasdaqGS:FOX) FY Conference Call - March 09, 2026 Company Overview - **Company**: Fox Corporation - **Fiscal Year**: The company is more than halfway through its fiscal year 2026 Key Highlights - **Revenue Growth**: Fox has reported revenue growth year-to-date compared to the previous year, despite a slight decline in EBITDA [3][4] - **Strong Performance**: FOX News has seen significant rating gains, while FOX Sports has achieved record-breaking revenues, particularly from NFL, college football, and baseball [4][6] - **New Initiatives**: The launch of FOX One has been a significant initiative, contributing positively to subscriber growth and engagement [4][6][72] - **Tubi's Growth**: Tubi has shown great engagement and revenue gains, becoming a key contributor to EBITDA [4][6] Advertising Market - **Healthy Advertising Environment**: The advertising market remains robust, with Fox experiencing seven consecutive quarters of advertising growth [56][60] - **Key Categories**: Nine out of the top ten advertising categories are growing, led by finance, pharma, and tech [60] - **Political Advertising**: Anticipation of a record-breaking political advertising cycle in the upcoming midterms, with an estimated market spend of $11 billion [45][56] Subscriber Trends - **Improvement in Subscriber Decline**: The rate of subscriber decline has improved, with seven consecutive quarters of better trends [10][12] - **Pricing Power**: Fox has maintained pricing power, allowing it to outpace the overall decline in subscribers [16][21] FOX One and Tubi - **FOX One Performance**: FOX One has attracted subscribers primarily from the cordless community, with a focus on not cannibalizing pay TV subscribers [72][82] - **Tubi's Profitability**: Tubi turned profitable two quarters ago, with a 19% revenue growth and a focus on original content to attract younger audiences [83][87] Capital Allocation - **Prudent Capital Management**: Fox has returned over $10 billion to shareholders through buybacks and dividends since 2019, with a focus on organic investments [142][144] - **M&A Strategy**: The company has not found attractive M&A opportunities recently, focusing instead on internal growth [145][146] Sports Rights and NFL Relationship - **NFL Contract**: Fox has four years left on its current NFL contract, with a strong relationship that has been built over 31 years [111][113] - **Concerns Over Value Transfer**: There are concerns about potential value transfer from Fox to the NFL, but the company emphasizes its historical ability to monetize rights increases [115][117] World Cup Expectations - **FIFA Men's World Cup**: The upcoming World Cup is expected to be a significant event for Fox, with increased advertiser demand and potential subscriber growth for FOX One [120][123] Digital Portfolio and Future Outlook - **Path to Profitability**: The digital investments, including FOX One and Tubi, are expected to contribute positively to EBITDA in the near term [100][102] - **Long-term Strategy**: Fox aims to continue investing in journalism, sports, and entertainment to maintain its competitive edge in a changing media landscape [27][31] Conclusion - **Overall Confidence**: Fox expresses confidence in its current momentum and strategic direction, with a focus on maintaining strong relationships with advertisers and viewers while navigating the evolving media landscape [6][7][31]

Core Viewpoint - Fox Corporation's President and COO John Nallen will participate in Deutsche Bank's 34th Annual Media, Internet & Telecom Conference on March 9, 2026, at 8:55 AM Eastern Time [1] Company Overview - Fox Corporation produces and distributes news, sports, and entertainment content through brands such as FOX News Media, FOX Sports, Tubi Media Group, FOX Entertainment, and FOX Television Stations [1] - These brands are culturally significant to consumers and commercially important for distributors and advertisers [1] - The company aims to leverage its extensive footprint to engage audiences, develop consumer relationships, and create compelling product offerings [1] - Fox Corporation has a strong track record in the news, sports, and entertainment industry, which shapes its strategy for capitalizing on existing strengths and investing in new initiatives [1]

Core Viewpoint - Fox Corporation will match the U.S. government's one-time $1,000 contribution to the "Trump Accounts" children's retirement savings program, highlighting its commitment to employee financial well-being [1] Group 1: Company Initiatives - The "Trump Accounts" program is set to launch in July 2026, providing tax-advantaged investment accounts for children born in the U.S. between January 1, 2025, and December 31, 2028 [1] - The contribution match aims to help employees establish a strong financial foundation for their children, promoting savings and investment education [1] Group 2: Company Overview - Fox Corporation produces and distributes news, sports, and entertainment content through brands like FOX News Media, FOX Sports, Tubi Media Group, FOX Entertainment, and FOX Television Stations [1] - The company emphasizes its cultural significance and commercial importance, allowing it to engage audiences and develop consumer relationships effectively [1] - Fox Corporation maintains a strong track record in the news, sports, and entertainment sectors, shaping its strategy for future investments and initiatives [1]

Core Viewpoint - The consumer discretionary sector has shown moderate growth over the past year, but is currently experiencing a negative year-to-date performance, prompting the identification of five stocks with potential for investment despite the sector's recent slump [2][4]. Consumer Discretionary Sector Overview - The consumer discretionary sector is characterized as growth-oriented, with share prices expected to increase over the long term. This sector is sensitive to market interest rate movements and typically exhibits an inverse relationship with them [3]. Interest Rate Impact - The Federal Reserve's recent easy monetary policies, including significant cuts to the benchmark lending rate, have created uncertainty regarding interest rate trajectories for the current year. Additionally, concerns about AI's impact on corporate profits have affected growth-oriented stocks [4]. Selected Stocks for Investment - Five consumer discretionary stocks have been identified for investment based on their favorable Zacks Rank: Ralph Lauren Corp., Roku Inc., Airbnb Inc., FOX Corp., and Carnival Corporation & plc. Each stock carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy), with potential for double-digit price upside in the short term [5]. Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and is benefiting from its "Next Great Chapter: Drive Plan," which emphasizes brand elevation and operational agility. The company expects revenue growth in the high-single to low-double digits for fiscal 2026, with gross margin increasing by 40-80 basis points and operating margin expanding by 100-140 basis points [6][7]. - The expected revenue and earnings growth rates for Ralph Lauren are 11.7% and 30.5%, respectively, for the current year, with a short-term average price target indicating an 11.8% increase from the last closing price of $369.18 [8]. Roku Inc. (ROKU) - Roku holds a Zacks Rank of 1, showcasing strong platform revenue growth driven by innovative advertising and streaming services. The company has achieved significant household penetration and improved profitability through strong free cash flow generation [9][10]. - Roku's expected revenue and earnings growth rates are 15.4% and over 100%, respectively, for the current year, with a short-term average price target suggesting a 35.7% increase from the last closing price of $90.06 [13]. Airbnb Inc. (ABNB) - Airbnb has a Zacks Rank of 2 and is experiencing growth in Nights and Experiences Booked, positively impacting its Gross Booking Value. The company benefits from increasing guest demand and a recovery in cross-border travel [14][15]. - The expected revenue and earnings growth rates for Airbnb are 10.8% and 18.1%, respectively, for the current year, with a short-term average price target indicating a 20.4% increase from the last closing price of $121.35 [16]. FOX Corp. (FOX) - FOX has a Zacks Rank of 1 and produces a variety of content, including news and sports. The expected revenue and earnings growth rates for FOX are -0.9% and -2.3%, respectively, for the current year, but the Zacks Consensus Estimate for earnings has improved by 6.9% over the last 30 days [17]. - The short-term average price target for FOX suggests a 36.1% increase from the last closing price of $51.56 [18]. Carnival Corporation & plc (CCL) - Carnival has a Zacks Rank of 1 and is benefiting from strong demand, increased booking volumes, and a focus on marketing to attract new customers. The company emphasizes the role of digital marketing and AI in enhancing effectiveness [19][20]. - The expected revenue and earnings growth rates for Carnival are 4.6% and 12.9%, respectively, for the current year, with a short-term average price target indicating a 19.1% increase from the last closing price of $31.77 [21].

Core Insights - Fox Corporation (FOXA) is expected to report second-quarter fiscal 2026 results on February 4, with earnings estimated at 46 cents per share, reflecting a 52.08% decline year over year, and revenues projected at $5.06 billion, indicating a 0.41% decrease from the previous year [2][10] Financial Performance - The company has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 33.54% [3] - The earnings estimate for Q4 2025 remains unchanged over the past 30 days, with an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [11][10] Factors Influencing Results - Fox Corporation entered the second quarter following solid revenue growth in the first quarter, with Tubi achieving its first profitable quarter [4] - The company is expected to benefit from strong sports and news programming, although year-over-year comparisons are affected by the absence of political advertising revenues from the previous year [4][10] Key Growth Drivers - FOX Sports is anticipated to be a significant growth driver, with notable viewership for NFL games and partnerships enhancing audience reach [5] - FOX News Media maintained its status as the most-watched cable network, positively influencing advertising pricing despite softer market conditions [6] - Entertainment programming saw benefits from returning franchises and new acquisitions, although development costs may have impacted operating margins [7] Tubi's Performance - Tubi's strong performance from the first quarter is expected to continue, bolstered by new partnerships enhancing content offerings [8]

Group 1 - Fox Corporation will discuss its second quarter fiscal 2026 financial results via a live audio webcast on February 4, 2026, at 8:30 a.m. ET / 5:30 a.m. PT [1] - The financial results will be released at approximately 8:00 a.m. ET / 5:00 a.m. PT 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, Tubi Media Group, FOX Entertainment, and FOX Television Stations [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]

Core Viewpoint - Fox Corporation is experiencing a strong performance driven by its diverse media offerings and strategic initiatives, despite facing a projected decline in earnings per share (EPS) for fiscal 2026. Group 1: Company Overview - Fox Corporation, based in New York, has a market capitalization of approximately $32.7 billion and operates 29 full-power broadcast stations, reaching audiences through various channels including cable, satellite, and digital platforms [1]. Group 2: Financial Performance - Analysts forecast a diluted EPS of $0.46 for fiscal 2026 Q2, representing a 52.1% decline from $0.96 in the same quarter last year, although the company has a history of beating EPS estimates [2]. - For fiscal 2026, Wall Street projects a diluted EPS of $4.42, a 7.5% year-over-year decline, followed by a rebound in fiscal 2027 with EPS growth of 15.2% to $5.09 [2]. Group 3: Stock Performance - FOXA stock has surged 53.4% over the past 52 weeks and has gained 4.2% year-to-date, outperforming the broader market and the S&P 500 Index, which rose 16.2% over the same period [3]. - The stock's performance is particularly notable within the communications sector, where it has outperformed the State Street Communication Services Select Sector SPDR ETF, which increased by 18.6% in 52 weeks but declined slightly year-to-date [3]. Group 4: Recent Developments - On October 30, 2025, FOXA stock rose 7.7% intraday following strong fiscal 2026 Q1 results, with revenue climbing 4.9% year-over-year to $3.74 billion, exceeding analyst estimates [4]. - Adjusted EPS for the first quarter increased by 4.1% to $1.51, surpassing analyst expectations of $1.08 [4]. - The strong performance was significantly driven by Tubi, which achieved its first profitable quarter, with ad revenue increasing by approximately 27% and average viewing time rising by 18% [5]. - NFL ratings also improved, up nearly 12% year-over-year, reinforcing Fox's dominance in live sports content [5]. - Additionally, Fox announced a $1.5 billion share buyback, indicating management's confidence in the company's growth trajectory and commitment to returning capital to shareholders [5].

Core Insights - Fox Corporation will discuss its first quarter fiscal 2026 financial results through a live audio webcast on October 30, 2025, at 8:00 a.m. ET [1] - The financial results will be released at approximately 7:30 a.m. ET on the same day [1] Company Overview - Fox Corporation produces and distributes news, sports, and entertainment content through major brands such as FOX News Media, FOX Sports, Tubi Media Group, FOX Entertainment, and FOX Television Stations [2] - These brands are culturally significant to consumers and commercially important for distributors and advertisers [2] - The company has a strong track record in the news, sports, and entertainment industry, which shapes its strategy to leverage existing strengths and invest in new initiatives [2]

Company Overview - Fox Corporation (FOXA) has a market cap of $27 billion and is a leading U.S.-based media company delivering news, sports, and entertainment through brands like FOX News, FOX Sports, the FOX Network, and Tubi [1] - The company operates across four segments: Cable Network Programming, Television, Credible, and FOX Studio Lot, reaching audiences through broadcast, cable, digital platforms, and production services [1][2] Stock Performance - FOXA shares have declined marginally from a 52-week high of $62.69, but the stock has increased nearly 13% over the past three months, underperforming the Nasdaq Composite's 17.2% return [3] - Year-to-date, FOXA stock is up 28.5%, surpassing the Nasdaq's over 18% gain, and has climbed 55.2% over the past 52 weeks compared to the Nasdaq's over 28% surge [4] Financial Results - In Q4 2025, FOXA reported adjusted EPS of $1.27 and revenue of $3.29 billion, but shares fell 3.7% due to rising SG&A expenses, which increased 9.5% year-over-year, impacting margins [5] - Advertising growth is viewed as less durable due to tough year-over-year comparisons linked to the absence of UEFA and Copa América broadcasts [5] Analyst Sentiment - Analysts remain cautiously optimistic about FOXA, with a consensus rating of "Moderate Buy" from 20 analysts, and the stock is trading above the mean price target of $60.29 [6]

Group 1 - Fox Corporation will discuss its fourth quarter and full year financial results for the 2025 fiscal year on August 5, 2025, 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] - A live audio webcast of the presentation will be available for investors [1] Group 2 - Fox Corporation produces and distributes news, sports, and entertainment content through brands like FOX News Media, FOX Sports, and FOX Entertainment [2] - The company holds cultural significance and commercial importance, allowing it to engage audiences and develop consumer relationships [2] - Fox Corporation has a strong track record in the news, sports, and entertainment industry, shaping its strategy for future investments [2]