Fox (FOXA) to Report Q2 Earnings: What's in the Offing?

Fox FOXA is set to report second-quarter fiscal 2024 results on Feb 7.

For the quarter, the Zacks Consensus Estimate for earnings is pegged at 9 cents per share, up 80% in the past 30 days. The figure indicates an 81.25% decline from the year-ago reported figure.

The consensus mark for revenues is pegged at $4.18 billion, implying a 9.29% 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 12.16%.

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 second-quarter fiscal 2024 performance is expected to have been negatively impacted by continued weakness in the Cable Network Programming segment. The Zacks Consensus Estimate for the Cable Network Programming segment’s revenues is pegged at $1.6 billion, indicating a year-over-year decline of 1.6%.

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

The Zacks Consensus Estimate for advertising revenues is pegged at $2 billion, indicating a year-over-year decline of 19.9%.

In the last reported quarter, advertising revenues declined 1.6% year over year to $1.2 billion as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media. The trend is expected to have continued in the to-be-reported quarter.

Strength in the Television segment, driven by increasing affiliate fee revenues, is likely to have aided top-line growth in the to-be-reported quarter.

In the last reported quarter, affiliate fees (54.3% of revenues) rose 1.7% to $1.74 billion, with 7.8% growth in the Television segment. In the to-be-reported quarter, the Zacks Consensus Estimate for affiliate fee revenues is pegged at $1.68 billion, indicating a year-over-year decline of 0.82%.

Moreover, this Zacks Rank #3 (Hold) company’s focus on expanding its digital business segments is likely to have boosted FOXA’s prospects in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fox News Digital and had a successful year in 2023, outperforming some of the key competitors in terms of multiplatform views, minutes and engagement on social media.

FOXA ended the year as the top-performing news brand in terms of multiplatform views and minutes, experiencing growth of 9% in views and 6% in minutes year over year. The company secured 20.2 billion multiplatform views, more than 36.9 billion minutes and averaged 93.7 million monthly unique visitors.

In comparison, Warner Bros. Discovery WBD-owned CNN and The New York Times experienced a decrease in these key performance indicators.

FOX News Mobile App averaged 6.1 million monthly unique visitors in 2023. It also emerged as the most engaged news brand on social media throughout the year, with more than 315 million social media interactions, including 81.6 million on Facebook and 198.9 million on Instagram, both owned by Meta Platforms META. On Alphabet GOOGL-owned YouTube, FOX News drove more than 2.3 billion views, securing the top spot in the news competitive set.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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