FOXA Q3 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Gain

Fox Corporation FOXA reported third-quarter fiscal 2025 adjusted earnings per share of $1.10, which beat the Zacks Consensus Estimate by 18.28%. The figure increased 0.9% year over year.Revenues increased 26.8% year over year to $4.37 billion, beating the consensus mark by 5.3%. Affiliate fees (45.9% of total revenues) increased 3.5% year over year to $2 billion, driven by 4% growth in the Television segment and 3% growth in the Cable Network Programming segment.Advertising revenues (46.6% of total revenues) increased 64.9% year over year to $2.03 billion, primarily due to the impact of Super Bowl LIX, continued digital growth led by the Tubi AVOD service, and stronger news ratings and pricing.Other revenues (7.5% of total revenues) surged 20.4% year over year to $330 million.Fox Corporation Price, Consensus and EPS Surprise Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation QuoteFollowing a strong third-quarter fiscal 2025, FOXA shares rose 6.33% in the pre-market trading. Shares of FOXA have gained 3.5% in the year-to-date period compared with the Zacks Consumer Discretionary sector’s growth of 0.2%.Top-Line DetailsCable Network Programming revenues (37.4% of total revenues) increased 11.1% year over year to $1.63 billion. Advertising revenues grew 25.7%, whereas revenues from Affiliate fees rose 2.8% year over year. Other revenues increased 79.2% on a year-over-year basis, primarily due to higher sports sublicensing revenues.Television revenues (61.9% of total revenues) rose 39.5% from the year-ago quarter’s figure to $2.70 billion. Advertising revenues jumped 77.2% year over year. Affiliate fees grew 4.3% year over year, led by higher rates at both the company's owned and operated stations, as well as third-party FOX affiliates. Other revenues increased 3% year over year, primarily due to higher content revenues.Operating DetailsIn the third quarter of fiscal 2025, operating expenses increased 44.6% year over year to $2.96 billion. As a percentage of revenues, operating expenses expanded 840 basis points (bps) to 67.8%. The increase in expenses was primarily due to higher sports programming rights amortization and production costs, and higher digital costs.Selling, general & administrative (SG&A) expenses increased 8% year over year to $551 million. As a percentage of revenues, SG&A expenses contracted 220 bps to 12.6%.Total adjusted EBITDA plunged 3.9% year over year to $856 million. Adjusted EBITDA margin contracted 630 bps to 19.6%.Cable Network Programming EBITDA rose 7.2% year over year to $878 million. Television reported an adjusted EBITDA of $60 million compared with $145 million in the year-ago quarter.Balance SheetAs of March 31, 2025, Fox had $4.81 billion in cash and cash equivalents compared with $3.32 billion as of Dec. 31, 2024. As of March 31, 2025, the company's long-term debt was $600 million.FOXA’s 2025 Earnings Estimate Revision SteadyThe Zacks Consensus Estimate for FOXA’s 2025 earnings is currently pegged at $4.45 per share, which has declined by 0.6% over the past 30 days and indicates year-over-year growth of 29.74%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar)The consensus mark for FOXA’s 2025 revenues is currently pegged at $15.88 billion, indicating year-over-year growth of 13.56%.Zacks Rank & Other Stocks to ConsiderFox currently carries a Zacks Rank #2 (Buy).Advance Auto Parts AAP, Alibaba BABA and Canada Goose GOOS are some other top-ranked stocks that investors can consider in the broader sector. While AAP sports a Zacks Rank #1 (Strong Buy), BABA and GOOS presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Advance Auto Parts shares have lost 29.7% year to date. AAP is set to report its first-quarter 2025 results on May 22.Alibaba shares have gained 57.6% year to date. BABA is set to report its fourth-quarter fiscal 2025 results on May 15.Canada Goose shares have lost 9% year to date. GOOS is set to report its fourth-quarter fiscal 2025 results on May 21.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Fox Corporation (FOXA): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks