Fox Corp Q2 revenue rises 2%, beats estimates

Overview

• Media conglomerate's fiscal Q2 revenue rose 2%, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Net income for fiscal Q2 decreased compared to the prior year

Outlook

• Fox did not provide specific future financial guidance

Result Drivers

• DISTRIBUTION REVENUE - Distribution revenues increased 4%, driven by 5% growth in the Cable Network Programming segment

• ADVERTISING REVENUE - Advertising revenues rose 1% due to higher sports and news pricing and digital growth, offset by lower political advertising and ratings

• HIGHER EXPENSES - Increased expenses were due to higher sports programming rights and digital marketing costs, impacting net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the broadcasting peer group is "buy"

• Wall Street's median 12-month price target for Fox Corp is $69.00, about 1.8% below its February 3 closing price of $70.27

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn1j7JFCa

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