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Fox (FOXA) Q4 Earnings Beat Estimates, Revenues Increase Y/Y
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Fox Corporation (FOXA - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings per share of 90 cents, which beat the Zacks Consensus Estimate by 8.43%. The figure increased 2.3% year over year.
Revenues increased 2% year over year to $3.09 billion. The figure missed the consensus mark by 0.29%.
Affiliate fees (60.1% of total revenues) rose 5% to $1.86 billion, driven primarily by 9% growth in the Television segment.
Advertising revenues (32.6% of total revenues) decreased 0.1% year over year to $1 billion, primarily due to the absence of the prior year’s broadcast of Super Bowl LVII and FIFA Men's World Cup on FOX Sports.
Other revenues (7.3% of total revenues) declined 10.7% year over year to $226 million.
Cable Network Programming revenues (46.5% of total revenues) increased 2% year over year to $1.44 billion. Advertising revenues and affiliate fees revenues rose 2.5% and 2%, respectively, year over year. Other revenues dipped 1.6% on a year-over-year basis, primarily due to the timing of sports sublicensing revenues at the national sports networks.
Television revenues (52.2% of total revenues) increased 1.8% from the year-ago quarter’s figure to $1.6 billion. Advertising revenues declined 1.3% year over year. Affiliate fees increased 9% year over year, led by higher rates at both the company's owned and operated stations, and third-party FOX affiliates. Other revenues plunged 19.4% year over year, primarily due to a lower volume of third-party content sales.
Operating Details
In fourth-quarter fiscal 2024, operating expenses increased 0.3% year over year to $1.78 billion. As a percentage of revenues, operating expenses contracted 90 basis points (bps) to 57.7%. The rise in expenses was primarily due to costs associated with the UEFA European Championship and CONMEBOL Copa América, along with increased digital investment at Tubi, partially offset by lower programming costs at FOX Entertainment.
Selling, general & administrative (SG&A) expenses rose 3.1% year over year to $539 million. As a percentage of revenues, SG&A expenses expanded 20 bps to 17.4%.
Total adjusted EBITDA increased 5.2% year over year to $773 million. Adjusted EBITDA margin expanded 80 bps to 25%.
Cable Network Programming EBITDA rose 20.2% year over year to $703 million. Television reported an adjusted EBITDA of $148 million, down 34.8% year over year.
Balance Sheet
As of Jun 30, 2024, Fox had $4.32 billion in cash and cash equivalents compared with $3.79 billion as of Mar 31, 2024. Long-term debt, as of Jun 30, 2024, was $7.2 billion.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
Shares of FOXA have gained 22.5% year to date against the Zacks Consumer Discretionary sector’s decline of 12.4%.
Warner Music Group is scheduled to report second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for WMG’s first-quarter EPS has increased 2 cents to 25 cents over the past 30 days.
Choice Hotels International is set to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for CHH’s EPS is pegged at $1.87, which has increased a cent over the past 30 days.
YETI is slated to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for YETI’s EPS is pegged at 64 cents, which has increased a cent over the past 30 days.
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Fox (FOXA) Q4 Earnings Beat Estimates, Revenues Increase Y/Y
Fox Corporation (FOXA - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings per share of 90 cents, which beat the Zacks Consensus Estimate by 8.43%. The figure increased 2.3% year over year.
Revenues increased 2% year over year to $3.09 billion. The figure missed the consensus mark by 0.29%.
Affiliate fees (60.1% of total revenues) rose 5% to $1.86 billion, driven primarily by 9% growth in the Television segment.
Advertising revenues (32.6% of total revenues) decreased 0.1% year over year to $1 billion, primarily due to the absence of the prior year’s broadcast of Super Bowl LVII and FIFA Men's World Cup on FOX Sports.
Other revenues (7.3% of total revenues) declined 10.7% year over year to $226 million.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Top-Line Details
Cable Network Programming revenues (46.5% of total revenues) increased 2% year over year to $1.44 billion. Advertising revenues and affiliate fees revenues rose 2.5% and 2%, respectively, year over year. Other revenues dipped 1.6% on a year-over-year basis, primarily due to the timing of sports sublicensing revenues at the national sports networks.
Television revenues (52.2% of total revenues) increased 1.8% from the year-ago quarter’s figure to $1.6 billion. Advertising revenues declined 1.3% year over year. Affiliate fees increased 9% year over year, led by higher rates at both the company's owned and operated stations, and third-party FOX affiliates. Other revenues plunged 19.4% year over year, primarily due to a lower volume of third-party content sales.
Operating Details
In fourth-quarter fiscal 2024, operating expenses increased 0.3% year over year to $1.78 billion. As a percentage of revenues, operating expenses contracted 90 basis points (bps) to 57.7%. The rise in expenses was primarily due to costs associated with the UEFA European Championship and CONMEBOL Copa América, along with increased digital investment at Tubi, partially offset by lower programming costs at FOX Entertainment.
Selling, general & administrative (SG&A) expenses rose 3.1% year over year to $539 million. As a percentage of revenues, SG&A expenses expanded 20 bps to 17.4%.
Total adjusted EBITDA increased 5.2% year over year to $773 million. Adjusted EBITDA margin expanded 80 bps to 25%.
Cable Network Programming EBITDA rose 20.2% year over year to $703 million. Television reported an adjusted EBITDA of $148 million, down 34.8% year over year.
Balance Sheet
As of Jun 30, 2024, Fox had $4.32 billion in cash and cash equivalents compared with $3.79 billion as of Mar 31, 2024. Long-term debt, as of Jun 30, 2024, was $7.2 billion.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
Shares of FOXA have gained 22.5% year to date against the Zacks Consumer Discretionary sector’s decline of 12.4%.
Some better-ranked stocks from the broader sector, which investors can consider, are Warner Music Group (WMG - Free Report) , Choice Hotels International (CHH - Free Report) and YETI (YETI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Warner Music Group is scheduled to report second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for WMG’s first-quarter EPS has increased 2 cents to 25 cents over the past 30 days.
Choice Hotels International is set to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for CHH’s EPS is pegged at $1.87, which has increased a cent over the past 30 days.
YETI is slated to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for YETI’s EPS is pegged at 64 cents, which has increased a cent over the past 30 days.