Fox (FOXA) Up 6.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Fox (FOXA). Shares have added about 6.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Fox due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Fox's Q1 Earnings Surpass Estimates, Revenues Improve Y/YFox Corporation reported first-quarter fiscal 2025 adjusted earnings per share of $1.45, which beat the Zacks Consensus Estimate by 29.5%. The figure increased 33.02% year over year.Revenues increased 11.13% year over year to $3.5 billion, beating the consensus mark by 5.6%.Affiliate fees (51.71% of total revenues) rose 5.92% to $1.84 billion, driven primarily by 10% growth in the Television segment and 3% growth in the Cable Network Programming segment.Advertising revenues (37.29% of total revenues) increased 10.75% year over year to $1.33 billion, primarily due to higher political advertising revenues at the FOX Television Stations, strong performance of Tubi, higher ratings as well as pricing in the direct response marketplace at FOX News Media, along with the impact of the Summer of Soccer at FOX Sports, including the broadcasts of the UEFA European Championship and CONMEBOL Copa América but partially offset by absence of FIFA Women's World Cup broadcast.Other revenues (11% of total revenues) increased 47% year over year to $392 million.Top-Line DetailsCable Network Programming revenues (44.81% of total revenues) increased 15.14% year over year to $1.59 billion. Advertising revenues increased 10.69%, whereas revenues from Affiliate fees rose 3.18% year over year. Other revenues increased 159.78% on a year-over-year basis, primarily due to the timing of sports sublicensing revenues at the national sports networks. Television revenues (54.8% of total revenues) increased 9.72% from the year-ago quarter’s figure to $1.95 billion. Advertising revenues increased 10.77% year over year. Affiliate fees increased 9.66% year over year, led by higher rates at both the company's owned and operated stations, as well as third-party FOX affiliates. Other revenues increased 3% year over year, driven by higher third-party content revenues at FOX Entertainment studios.Operating DetailsIn the first quarter of fiscal 2025, operating expenses increased 8.38% year over year to $2.02 billion. As a percentage of revenues, operating expenses contracted 1295 basis points (bps) to 58.54%. The increase in expenses was primarily due to higher programming rights amortization at FOX Sports and higher costs at Tubi.Selling, general & administrative (SG&A) expenses increased 4.58% year over year to $502 million. As a percentage of revenues, SG&A expenses contracted 88 bps to 14.09%.Total adjusted EBITDA increased 20.60% year over year to $1.05 billion. Adjusted EBITDA margin expanded 231 bps to 29.41%.Cable Network Programming EBITDA rose 23.23% year over year to $748 million. Television reported an adjusted EBITDA of $372 million, up 5.98% year over year.Balance SheetAs of Sept. 30, 2024, Fox had $4.05 billion in cash and cash equivalents compared with $4.31 billion as of June 30, 2024. Long-term debt, as of Sept. 30, 2024, was $600 million.How Have Estimates Been Moving Since Then?It turns out, estimates revision flatlined during the past month.VGM ScoresAt this time, Fox has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookFox has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerFox is part of the Zacks Broadcast Radio and Television industry. Over the past month, Roku (ROKU), a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended September 2024 more than a month ago.Roku reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +16.5%. EPS of -$0.06 for the same period compares with -$2.33 a year ago.For the current quarter, Roku is expected to post a loss of $0.45 per share, indicating a change of +18.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.Roku has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Corporation (FOXA): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks