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Fox Corp (FOXA) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

Fox Corporation FOXA is set to report first-quarter fiscal 2020 results on Nov 6.

Notably, Fox became a standalone, publicly-traded company on Mar 21, following the merger of Disney and Twenty-First Century Fox, Inc.

Fox’s portfolio now comprises Twenty-First Century Fox’s news, sports and broadcast businesses. These include FOX News, FOX Business, FOX Broadcasting Company (the FOX Network), FOX Sports, FOX Television Stations Group, sports cable networks like FS1, FS2, FOX Deportes and Big Ten Network, and certain other assets.

For the quarter, the Zacks Consensus Estimate for revenues currently stands at $2.57 billion. The consensus mark for earnings has increased 6% to 70 cents over the past 30 days.

In the fourth quarter of fiscal 2019, Fox reported adjusted earnings of 62 cents per share that decreased 7.5% year over year but beat the Zacks Consensus Estimate by 3 cents

Revenues were up 5% year over year to $2.51 billion.
 

Fox Corporation Price and EPS Surprise

Fox Corporation Price and EPS Surprise

Fox Corporation price-eps-surprise | Fox Corporation Quote

Let’s see how things are shaping up for the upcoming announcement.

Factors to Consider

Fox’s portfolio strength across entertainment, sports and news content is expected to reflect on first-quarter fiscal 2020 results. The dominant position of Fox News Channel in the cable news space is expected to have aided the top line.

Additionally, Fox is expected to have benefited from deals with multiple streaming service providers, including Disney-owned Hulu.

Moreover, the healthy advertising market is driving ad pricing, particularly for sports and news content. In the last quarter earnings call, Fox stated that advertisers are showing interest in primetime and sports programming, a trend that most likely continued in the to-be-reported quarter. This is expected to have driven its advertising revenues.

However, the lack of political-ad spending is expected to have dampened advertising revenues in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates.

Fox has a Zacks Rank #3 and an Earnings ESP of +2.97%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat this season.

Activision Blizzard ATVI has an Earnings ESP of +24.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

iHeartMedia IHRT has an Earnings ESP of +3.17% and a Zacks Rank #2.

Take Two Interactive TTWO has an Earnings ESP of +6.96% and a Zacks Rank #3.

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