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Fox Corp. (FOXA) to Report Q2 Earnings: What's in the Cards?

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Fox Corporation (FOXA - Free Report) is set to report second-quarter fiscal 2021 results on Feb 9.

The Zacks Consensus Estimate for loss has narrowed 5 cents to 11 cents per share over the past 30 days. The company had reported earnings of 10 cents per share in the year-ago quarter.

The consensus mark for revenues is currently pegged at $3.97 billion, suggesting 5% increase from the figure reported in the year-ago quarter.

Notably, Fox has a stellar surprise history. It beat estimates in each of the trailing four quarters, delivering an average surprise of 106.6%.

Fox Corporation Price and EPS Surprise

Fox Corporation Price and EPS Surprise

Fox Corporation price-eps-surprise | Fox Corporation Quote

Factors to Consider

Coronavirus-induced lower but recovering ad demand and spending is expected to have impacted Fox’s fiscal second-quarter advertising revenues, which accounts for over 50% of the company’s top line.

Moreover, increased political-ad spending and resumption of certain sports events in the to-be-reported quarter are expected to have partially offset dented ad revenues due to postponement of other sporting events globally.

Fox’s portfolio strength across entertainment, sports and news content is expected to drive the company’s second-quarter fiscal 2021 results. The company’s strong offerings are driving user growth and this trend is likely to have continued in the to-be-reported quarter.

Moreover, Fox’s investments in expanding its network are aiding ratings growth, a trend which is likely to have continued in the to-be-reported quarter.

In fact, in the to-be-reported quarter, FOX News Digital witnessed its strongest November performance as well as its highest month of multiplatform views on record.

Markedly, the company saw double-digit increases on a year-over-year basis including multiplatform views of more than 2.7 billion (up 14%), and over 5 billion multiplatform minutes (up 25%), per Comscore data, cited by Fox. Moreover, multiplatform unique visitors increased 38% year over year.

Moreover, reported 29.5 million multiplatform unique visitors, drove 115 million multiplatform total minutes and saw 251 million multiplatform total views last month, securing double-digit growth across all metrics versus the prior year.

This is expected to have helped the company to reach a global audience and expand its international user base while attracting advertisers to the OTT platform, thereby generating ad revenues.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Fox has an Earnings ESP of +145.46% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few more companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:

CDW Corporation (CDW - Free Report) has an Earnings ESP of +6.74% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corsair Gaming, Inc. (CRSR - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2.

Take Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +14.52% and is Zacks #2 Ranked.

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