Yahoo Finance Fox (FOXA) to Report Q2 Earnings: What's in the Offing?
Fox FOXA is set to report second-quarter fiscal 2023 results on Feb 8.
For the quarter, the Zacks Consensus Estimate for earnings is pegged at 47 cents per share, down 7.8% in the past 30 days. The figure indicates 261.5% growth from the year-ago reported figure.
The consensus mark for revenues, pegged at $4.56 billion, implies a 2.69% increase from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 298.8%.
Let’s see how things have shaped up for this announcement.
Fox Corporation Price and EPS Surprise
Fox Corporation price-eps-surprise | Fox Corporation Quote
Factors to Consider
Fox’s second-quarter fiscal 2023 results are expected to benefit from the steady affiliate revenue growth. In the last reported quarter, affiliate fee revenues rose 2.6% year over year, reaching $1.71 billion, driven by healthy growth in the FOX Cable Networks and Television segments.
The Zacks Consensus Estimate for affiliate fee revenues is currently pegged at $1.91 billion, indicating growth of 13.4% year over year.
Advertisers, however, continue to face supply-chain disruptions and labor shortages and many are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on this Zacks Rank #3 (Hold) company’s ad revenue growth in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for advertising revenues is currently pegged at $2.25 billion, indicating decline of 6.3% year over year.
In the last reported quarter, advertising increased 8% to $1.22 billion, driven by continued growth at Tubi and continued strength in pricing at the FOX Network.
Notably, Fox’s investments in the expansion of its network and offerings are expected to have aided growth in ratings in the to-be-reported quarter. Fox News Digital has finished 2022 as the top-performing new channel. It secured more than 18 billion multiplatform views, over 34 billion multiplatform minutes and averaged 82.7 million monthly multiplatform unique visitors in 2022.
Fox News Digital was also seen outperforming its competitor Warner Bros. Discovery’s WBD CNN, which had 17 billion multiplatform views and 29 billion multiplatform minutes. This marks the first time that Fox surpassed CNN in multiplatform views since 2019.
On Dec 20, the company announced that the FIFA World Cup 2022 final match held in Qatar between Argentina and France had recorded an audience of roughly 16.8 million on the Fox network and its streaming platform, according to Nielsen Media Research.
Fox captured a strong market share of 64% of the total viewership for the 2022 final match in America, which has been recorded at around 26 million, leaving behind Comcast’s CMCSA Telemundo, which captured 34% with 9 million viewers. This suggests Fox’s strong reach and dominance on cable TV platforms.
Fox and DIRECTV also announced a multi-year distribution agreement with the renewal of FS1, FS2, Big Ten Network, FOX Deportes and FOX Soccer Plus.
FOX News Media’s expanded distribution of its direct-to-consumer subscription streaming service FOX Nation across live TV streaming platform FuboTV FUBO is likely to have aided viewership in the to-be-reported quarter.
Moreover, Fox’s focus on expanding its digital business segments is likely to have boosted the company’s prospects in the to-be-reported quarter.
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