New York-headquartered Fox Corporation (FOXA), with a market cap of $17.2 billion, produces and distributes news, sports, and entertainment content. The company’s brands include FOX News, FOX Sports, the FOX Network, FOX Television Stations, FS1, FS2, Fox Deportes, and Big Ten Network. Fox Corporation is scheduled to release its fiscal 2024 Q4 earnings results on Tuesday, Aug. 13.
Ahead of the event, analysts expect Fox Corporation to report a profit of $0.85 per share, down 3.4% from $0.88 per share in the year-ago quarter. However, the company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Fueled by the strength and leadership of core brands such as FOX News, FOX Sports, and the FOX Network, which draw a dedicated audience, Fox Corporation’s EPS of $1.09 for the last reported quarter improved 16% year over year and surpassed the consensus estimate by 11.2%.
Looking ahead, analysts expect Fox Corporation to report an EPS of $3.34 in fiscal 2024, down 4.8% from $3.51 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 12.3% annually to $3.75.
In 2024, FOXA stock has surged 24.8%, overshadowing the broader S&P 500 Index's ($SPX) 16.7% gains and the Communication Services Select Sector SPDR Fund’s (XLC) 17.6% returns over the same time frame.
In addition to its multi-national customer base, Fox Corporation's solid momentum in the market can be attributed to its emphasis on live content, such as news and sports, and must-have event programming, including major sports events and exclusive shows. Continued investments in innovation, particularly in its digital portfolio, led by Tubi, also drive its growth and attract new users.
On May 8, Fox Corporation released its Q3 earnings report, surpassing both bottom-line and top-line expectations, which boosted its stock by 2.6%. The company posted a quarterly net income of $704 million, up from a net loss of $50 million the previous year, mainly due to the absence of legal settlement charges at FOX News Media and a gain from USFL assets contributed to the United Football League joint venture.
The current consensus opinion on FOXA stock is “Moderate Buy” overall. Out of 23 analysts covering the stock, nine suggest a “Strong Buy,” 12 recommend a “Hold,” and two advise a “Strong Sell.” This consensus rating is an upgrade from three months before when the stock had an overall rating of “Hold.”
While the stock currently trades above its average analyst price target of $36.74, its Street-high target of $44 indicates a potential upside of 18.8% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
