Yahoo Finance Fox (FOXA) Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Fox Corporation FOXA reported third-quarter fiscal 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate by 6.82%. The figure increased 16% year over year.
Revenues were up 18.2% year over year to $4.08 billion, which beat the consensus mark by 0.92%.
Affiliate fees (45.5% of revenues) rose 3.3% to $1.86 billion, with 9% growth in the Television segment.
Advertising (45.9% of revenues) jumped 43.5% year over year to $1.88 billion. Top-line growth benefited from the positive impact of Super Bowl LVII, a higher volume of NFL games and continued growth at Tubi.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Other revenues (8.6% of revenues) inched up 0.3% year over year to $352 million.
Top-Line Details
Cable Network Programming (38.4% of revenues) revenues moved down by 0.8% year over year to $1.57 billion. Advertising revenues dropped 6.8%, whereas revenues from Affiliate fees decreased 0.4% year over year. Other revenues increased 9.5% on a year-over-year basis.
Television (60.6% of revenues) revenues jumped 36% from the year-ago quarter’s figure to $2.48 billion. Advertising revenues soared 60.9% year over year. Affiliate fees increased 9.1% year over year. Other revenues increased 0.7% year over year.
Operating Details
In third-quarter fiscal 2023, operating expenses jumped 26% year over year to $2.73 billion. As a percentage of revenues, operating expenses increased 410 basis points (bps) to 66.8%.
Expenses increased due to higher programming rights amortization and production costs at FOX Sports driven by the broadcast of Super Bowl LVII and a higher volume of NFL games. Higher digital investment at Tubi also drove expense growth.
Selling, general & administrative (SG&A) expenses increased 8.9% year over year to $528 million. As a percentage of revenues, SG&A expenses declined 110 bps to 12.9%.
Total adjusted EBITDA increased 2.7% year over year to $833 million. Adjusted EBITDA margin contracted 310 bps to 20.4%.
Cable Network Programming EBITDA decreased 8.3% year over year to $792 million. Television EBITDA reported $117 million of adjusted EBITDA compared with adjusted EBITDA of $35 million reported in the year-ago period.
Balance Sheet
As of Mar 31, 2023, Fox had $4.15 billion in cash and cash equivalents compared with $4.05 billion as of Dec 31, 2022.
Long-term debt, as of Mar 31, 2023, was $7.21 billion, slightly higher than $7.20 billion as of Dec 31, 2022.
Zacks Rank & Stocks to Consider
Fox currently has a Zacks Rank #3 (Hold).
FOXA shares have gained 6.1% year to date, underperforming the Zacks Consumer Discretionary sector’s gain of 10.5%.
BJ’s Wholesale Club BJ, PlayAGS AGS and International Game Technology IGT are some better-ranked stocks that investors can consider in the broader sector. While International Game Technology sports Zacks Rank #1 (Strong Buy), both BJ’s Wholesale Club and PlayAGS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Wholesale Club is set to report its first-quarter 2023 results on May 23. BJ shares are up 13.1% year to date.
PlayAGS is set to announce its first-quarter 2023 results on May 9. AGS shares have gained 3.5% year to date.
International Game Technology is set to release its first-quarter 2023 results on May 9. IGT shares are up 19.3% year to date.
Want 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
International Game Technology (IGT) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Fox Corporation (FOXA) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
