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21st Century Fox (FOXA) Posts Q1 Earnings Miss, Revenue Slumps 2%

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Twenty-First Century Fox, Inc. (FOXA - Free Report) just released its latest quarterly financial results, posting adjusted earnings of $0.49 per share and revenues of $7.42 billion.

Currently, FOXA is a Zacks Rank #4 (Sell), but that could change based on today’s results. Shares of the company have gained about 4.7% over the past month but dropped nearly 0.8% during regular trading hours today.

The stock is currently up 0.3% to $37.80 per share in after-hours trading shortly after its earnings report was released.

Fox:

Missed earnings estimates. The company posted adjusted earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.52. Investors should note that this consensus projection has trended downward over the duration of the quarter.

Beat revenue estimates. The company saw revenue figures of $7.42 billion, beating our consensus estimate of $7.31 billion. Total revenue was down 2% from the year-ago period.

Fox said that its revenue decline reflects the loss of Super Bowl advertising revenues, partially offset by higher affiliate, syndication, and advertising revenues at its Cable Network Programming segment. Quarterly income from continuing operations before a tax income expense increased 6%, while quarterly OBIDA was 2% lower.

Cable Network Programming quarterly segment OIBDA increased 16%, whereas Filmed Entertainment generated quarterly segment OIBDA of $286 million—marking a 23% decline.

“Our cable segment delivered its highest earnings ever in our fiscal third quarter, propelled by sustained double-digit gains in domestic affiliate revenues,” said Executive Chairmen Rupert and Lachlan Murdoch. “Our film studio delivered boxoffice and awards momentum that we expect to continue with the upcoming release of Deadpool 2.”

The company will form a new “Fox” comprised of the Fox Broadcasting Company, Fox Television Stations, Fox News Channel, Fox Business Network, FS1, FS2, Big Ten Network and certain other assets before its deal with Disney (DIS - Free Report) closes. A preliminary joint proxy statement was filed with the SEC on April 18, 2018, and the deal is expected to be approximately 12 to 18 months from December 13, 2017. Fox also said it remains committed to its offer to buy Sky Broadcasting.

Here’s a graph that looks at 21st Century Fox’s recent earnings performance:

Twenty-First Century Fox, Inc. is involved in creating and distributing media services. Its business portfolio consists of cable, broadcast, film, pay TV and satellite assets.

Check back later for our full analysis on FOXA’s earnings report!

Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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