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Fox (FOXA) Q2 Earnings Top Estimates, Revenues Increase Y/Y
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Fox Corporation (FOXA - Free Report) reported second-quarter fiscal 2021 adjusted earnings of 13 cents per share, which beat the Zacks Consensus Estimate of one cent but decreased 18.8% year over year.
Revenues were up 8.7% year over year to $4.44 billion. The figure surpassed the consensus mark by 5.5%.
Affiliate fees (38% of revenues) rose 11.2% year over year to $1.69 billion. Advertising (54.2% of revenues) revenues increased 5.5% year over year to $2.41 billion. Other revenues (7.8% of revenues) increased 20.2% year over year to $345 million.
Top-Line Details
Cable Network Programming (36.9% of revenues) revenues increased 10.1% year over year to $1.64 billion. Advertising revenues increased 2.9% year over year, driven by continued pricing strength at FOX News Media, as well as stronger pricing and additional MLB playoff games at the national sports networks.
Revenues from Affiliate fees increased 12% year over year, driven by contractual price increases, including the impact of distribution agreement renewals.
Other revenues increased 21.8% on a year-over-year basis, driven by higher sports subscription sublicensing revenues.
Television (62.1% of revenues) revenues climbed 7.9% from the year-ago quarter to $2.76 billion. Advertising revenues increased 6.1% year over year, primarily due to a recovering base market at the FOX Television Stations, continued growth at Tubi and strong pricing at FOX Entertainment.
Affiliate fees and other revenues increased 10% and 24.8%, respectively. Affiliate revenues were driven by increases in fees from third-party FOX affiliates and higher average rates at the company’s owned and operated television stations.
Increase in other revenues was primarily due to higher content revenues at FOX Entertainment, as well as the acquisitions of MarVista Entertainment and TMZ.
Operating Details
In second-quarter fiscal 2022, operating expenses increased 9.6% year over year to $3.67 billion. As a percentage of revenues, operating expenses expanded 70 basis points (bps) to 82.6%.
Selling, general & administrative (SG&A) expenses increased 5.9% year over year to $468 million. As a percentage of revenues, SG&A expenses decreased 30 bps to 10.5%.
Adjusted EBITDA increased 1.6% year over year to $310 million. EBITDA margin contracted 50 bps to 7%.
Cable Network Programming EBITDA increased 17% year over year at $668 million. EBITDA margin expanded 240 bps on a year-over-year basis to 40.8%.
Television EBITDA loss was $273 million compared with year-ago quarter’s loss of $185 million.
Balance Sheet
As of Dec 31, 2021, Fox had $4.26 billion in cash and cash equivalents compared with $5.41 billion as of Sep 30, 2021.
Long-term debt, as of Dec 31, 2021, was $7.20 billion, which remained flat sequentially.
Fox declared a dividend of 24 cents per Class A and Class B share, payable on Mar 30, 2022.
Fox has authorized a $4-billion stock repurchase program. To date, the company has repurchased $1.5 billion of its Class A common stock and $634 million of its Class B common stock.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
Fox’s shares have outperformed the Zacks Consumer Discretionary sector in the past year. The stock is up32.8% compared with the sector’s decline of 21.4%.
Cedar Fair (FUN - Free Report) , Crocs (CROX - Free Report) and Gildan Activewear (GIL - Free Report) are better-ranked stocks that investors can consider from the broader sector.
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Fox (FOXA) Q2 Earnings Top Estimates, Revenues Increase Y/Y
Fox Corporation (FOXA - Free Report) reported second-quarter fiscal 2021 adjusted earnings of 13 cents per share, which beat the Zacks Consensus Estimate of one cent but decreased 18.8% year over year.
Revenues were up 8.7% year over year to $4.44 billion. The figure surpassed the consensus mark by 5.5%.
Affiliate fees (38% of revenues) rose 11.2% year over year to $1.69 billion. Advertising (54.2% of revenues) revenues increased 5.5% year over year to $2.41 billion. Other revenues (7.8% of revenues) increased 20.2% year over year to $345 million.
Top-Line Details
Cable Network Programming (36.9% of revenues) revenues increased 10.1% year over year to $1.64 billion. Advertising revenues increased 2.9% year over year, driven by continued pricing strength at FOX News Media, as well as stronger pricing and additional MLB playoff games at the national sports networks.
Revenues from Affiliate fees increased 12% year over year, driven by contractual price increases, including the impact of distribution agreement renewals.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Other revenues increased 21.8% on a year-over-year basis, driven by higher sports subscription sublicensing revenues.
Television (62.1% of revenues) revenues climbed 7.9% from the year-ago quarter to $2.76 billion. Advertising revenues increased 6.1% year over year, primarily due to a recovering base market at the FOX Television Stations, continued growth at Tubi and strong pricing at FOX Entertainment.
Affiliate fees and other revenues increased 10% and 24.8%, respectively. Affiliate revenues were driven by increases in fees from third-party FOX affiliates and higher average rates at the company’s owned and operated television stations.
Increase in other revenues was primarily due to higher content revenues at FOX Entertainment, as well as the acquisitions of MarVista Entertainment and TMZ.
Operating Details
In second-quarter fiscal 2022, operating expenses increased 9.6% year over year to $3.67 billion. As a percentage of revenues, operating expenses expanded 70 basis points (bps) to 82.6%.
Selling, general & administrative (SG&A) expenses increased 5.9% year over year to $468 million. As a percentage of revenues, SG&A expenses decreased 30 bps to 10.5%.
Adjusted EBITDA increased 1.6% year over year to $310 million. EBITDA margin contracted 50 bps to 7%.
Cable Network Programming EBITDA increased 17% year over year at $668 million. EBITDA margin expanded 240 bps on a year-over-year basis to 40.8%.
Television EBITDA loss was $273 million compared with year-ago quarter’s loss of $185 million.
Balance Sheet
As of Dec 31, 2021, Fox had $4.26 billion in cash and cash equivalents compared with $5.41 billion as of Sep 30, 2021.
Long-term debt, as of Dec 31, 2021, was $7.20 billion, which remained flat sequentially.
Fox declared a dividend of 24 cents per Class A and Class B share, payable on Mar 30, 2022.
Fox has authorized a $4-billion stock repurchase program. To date, the company has repurchased $1.5 billion of its Class A common stock and $634 million of its Class B common stock.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
Fox’s shares have outperformed the Zacks Consumer Discretionary sector in the past year. The stock is up32.8% compared with the sector’s decline of 21.4%.
Cedar Fair (FUN - Free Report) , Crocs (CROX - Free Report) and Gildan Activewear (GIL - Free Report) are better-ranked stocks that investors can consider from the broader sector.
While Cedar Fair and Crocs sport a Zacks Rank #1, Gilden carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cedar Fair is set to announce fourth-quarter 2021 results on Feb 16. FUN is up 35.1% in the past year.
Crocs is set to announce fourth-quarter fiscal 2021 results on Feb 16. CROX is up 31.3% in the past year.
Gildan Activewear is set to announce fourth-quarter 2021 results on Feb 23. GIL is up 46.7% in the past year.