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Fox (FOXA) Q1 Earnings Top Estimates, Revenues Rise Y/Y
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Fox Corporation (FOXA - Free Report) reported first-quarter fiscal 2021 adjusted earnings of $1.18 per share that beat the Zacks Consensus Estimate by 45.7% and increased 42.25 year over year.
Revenues were up 1.9% year over year to $2.71 billion. The figure surpassed the consensus mark by 5.1%.
Affiliate fees (56.4% of revenues) rose 10% to $1.53 billion while Advertising (35.7% of revenues) revenues declined 6.9% to $969 million. Other revenues (7.7% of revenues) declined 7.3% from the year-ago quarter’s levels to $215 million.
Fox became a standalone, publicly-traded company on Mar 21, 2019, following the merger of Disney and Twenty-First Century Fox, Inc.
The standalone Fox’s portfolio 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 as well as certain other assets.
Cable Network Programming (48.8% of revenues) revenues improved 3.1% year over year to $1.32 billion. Revenues from Affiliate fees increased 3.6% year over year, as contractual price increases, including the impact of distribution agreement renewals, were partially offset by net subscriber declines.
Advertising revenues moved up 17.7% year over year, primarily attributed to higher pricing and stronger ratings at FOX News Media were partially offset by the postponement of live events at FS1 as a result of COVID-19.
Other revenues declined 42.4% on a year-over-year basis, primarily due to lower sports sublicensing revenues as a result of COVID-19.
Television (49.7% of revenues) revenues declined marginally by 0.4% from the year-ago quarter’s figure to $1.35 billion. Advertising revenues declined 14.9% year over year primarily due to fewer NFL broadcasts compared to the prior year, the postponement of college football games at FOX Sports and certain scripted programming at FOX Entertainment as a result of COVID-19 and the absence of the prior-year broadcast of the 71st Annual Primetime Emmy Awards.
Meanwhile, Affiliate fees and other revenues increased 23.1% and 5.3%, respectively. Affiliate revenues were driven by increases in fees from third-party FOX affiliates and higher average rates per subscriber, partially offset by net subscriber declines, at the company’s owned and operated television stations.
Operating Details
In first-quarter fiscal 2021, operating expenses fell 20.4% year over year to $1.16 billion. As a percentage of revenues, operating expenses contracted on a year-over-year basis to 43% from 55% in the year-ago quarter.
Selling, general & administrative (SG&A) expenses increased 10.2% on a year-over-year basis to $388 million. As a percentage of revenues, SG&A expenses expanded 110 bps to 14.3%.
The year-over-year increase in SG&A expenses was primarily due to higher costs related to FOX operating as a standalone public company.
Segment EBITDA increased 36.2% year over year to $1.16 billion. EBITDA margin expanded on a year-over-year basis to 42.9% from 32.1% in the year-ago quarter.
Cable Network Programming EBITDA improved 14.2% to $781 million. EBITDA margin grew 570 basis points (bps) to 58.9%.
Television EBITDA jumped 82.1% to $457 million. EBITDA margin expanded on a year-over-year basis to 33.9% from 18.5% in the year-ago quarter.
Balance Sheet
As of Sep 30, 2020, Fox had $5.06 billion in cash and cash equivalents compared with $4.64 billion as of Jun 30, 2020.
Long-term debt as of Sep 30, 2020 was $7.94 billion, which remained flat sequentially.
YETI Holdings, Lionsgate and News Corporation are scheduled to report earnings on Nov 5.
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Fox (FOXA) Q1 Earnings Top Estimates, Revenues Rise Y/Y
Fox Corporation (FOXA - Free Report) reported first-quarter fiscal 2021 adjusted earnings of $1.18 per share that beat the Zacks Consensus Estimate by 45.7% and increased 42.25 year over year.
Revenues were up 1.9% year over year to $2.71 billion. The figure surpassed the consensus mark by 5.1%.
Affiliate fees (56.4% of revenues) rose 10% to $1.53 billion while Advertising (35.7% of revenues) revenues declined 6.9% to $969 million. Other revenues (7.7% of revenues) declined 7.3% from the year-ago quarter’s levels to $215 million.
Fox became a standalone, publicly-traded company on Mar 21, 2019, following the merger of Disney and Twenty-First Century Fox, Inc.
The standalone Fox’s portfolio 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 as well as certain other assets.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Top-Line Details
Cable Network Programming (48.8% of revenues) revenues improved 3.1% year over year to $1.32 billion. Revenues from Affiliate fees increased 3.6% year over year, as contractual price increases, including the impact of distribution agreement renewals, were partially offset by net subscriber declines.
Advertising revenues moved up 17.7% year over year, primarily attributed to higher pricing and stronger ratings at FOX News Media were partially offset by the postponement of live events at FS1 as a result of COVID-19.
Other revenues declined 42.4% on a year-over-year basis, primarily due to lower sports sublicensing revenues as a result of COVID-19.
Television (49.7% of revenues) revenues declined marginally by 0.4% from the year-ago quarter’s figure to $1.35 billion. Advertising revenues declined 14.9% year over year primarily due to fewer NFL broadcasts compared to the prior year, the postponement of college football games at FOX Sports and certain scripted programming at FOX Entertainment as a result of COVID-19 and the absence of the prior-year broadcast of the 71st Annual Primetime Emmy Awards.
Meanwhile, Affiliate fees and other revenues increased 23.1% and 5.3%, respectively. Affiliate revenues were driven by increases in fees from third-party FOX affiliates and higher average rates per subscriber, partially offset by net subscriber declines, at the company’s owned and operated television stations.
Operating Details
In first-quarter fiscal 2021, operating expenses fell 20.4% year over year to $1.16 billion. As a percentage of revenues, operating expenses contracted on a year-over-year basis to 43% from 55% in the year-ago quarter.
Selling, general & administrative (SG&A) expenses increased 10.2% on a year-over-year basis to $388 million. As a percentage of revenues, SG&A expenses expanded 110 bps to 14.3%.
The year-over-year increase in SG&A expenses was primarily due to higher costs related to FOX operating as a standalone public company.
Segment EBITDA increased 36.2% year over year to $1.16 billion. EBITDA margin expanded on a year-over-year basis to 42.9% from 32.1% in the year-ago quarter.
Cable Network Programming EBITDA improved 14.2% to $781 million. EBITDA margin grew 570 basis points (bps) to 58.9%.
Television EBITDA jumped 82.1% to $457 million. EBITDA margin expanded on a year-over-year basis to 33.9% from 18.5% in the year-ago quarter.
Balance Sheet
As of Sep 30, 2020, Fox had $5.06 billion in cash and cash equivalents compared with $4.64 billion as of Jun 30, 2020.
Long-term debt as of Sep 30, 2020 was $7.94 billion, which remained flat sequentially.
Zacks Rank & Stocks to Consider
Fox currently carries a Zacks Rank #3 (Hold).
YETI Holdings, Inc. (YETI - Free Report) , Lionsgate (LGF.A - Free Report) and News Corporation (NWSA - Free Report) are some better-ranked stocks in the broader Consumer & Discretionary sector, all three carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
YETI Holdings, Lionsgate and News Corporation are scheduled to report earnings on Nov 5.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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