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Fox (FOXA) to Report Q1 Earnings: What's in the Offing?

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Fox (FOXA - Free Report) is set to report first-quarter fiscal 2024 results on Nov 2.

For the quarter, the Zacks Consensus Estimate for earnings is pegged at 97 cents per share, down 2 cents in the past 30 days. The figure indicates a 19.83% decline from the year-ago reported figure.

The consensus mark for revenues, pegged at $3.18 billion, implies a 0.53% decline from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.08%.

Let’s see how things have shaped up for this announcement.

Fox Corporation Price and EPS Surprise

 

Fox Corporation Price and EPS Surprise

Fox Corporation price-eps-surprise | Fox Corporation Quote

 

Factors to Consider

Fox’s first-quarter fiscal 2024 performance is expected to have been impacted by slowing affiliate revenue growth. In the last reported quarter, affiliate fees (58.4% of revenues) rose 3% to $1.77 billion, with 9% growth in the Television segment.

The Zacks Consensus Estimate for affiliate fee revenues is pegged at $1.68 billion, indicating a year-over-year decline of 0.82%.

Advertisers are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on the company’s ad revenue growth in the to-be-reported quarter.

The Zacks Consensus Estimate for advertising revenues is pegged at $1.21 billion, indicating a year-over-year decline of 2.32%. In the last reported quarter, advertising revenues increased 4% to $1.01 billion.

In the fiscal first quarter, Fox announced that it has signed a multi-year agreement renewing the FOX affiliations of 29 Nexstar-owned stations across the United States. This is expected to have boosted the popularity and 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.

What Our Model Says

Our proven model predicts an earnings beat for Fox this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Fox currently has an Earnings ESP of +0.60% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.

GoDaddy (GDDY - Free Report) has an Earnings ESP of +8.11% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year quarter’s reported figure.

BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present.

BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.

Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.

Fastly is scheduled to release third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate is pegged at a loss of 7 cents per share, suggesting a rise of 50% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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