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Fox Corp. (FOXA) to Report Q3 Earnings: What's in the Cards?

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Fox Corporation (FOXA - Free Report) is set to report third-quarter fiscal 2021 results on May 5.

The Zacks Consensus Estimate for earnings has increased 5.5% to 58 cents per share over the past 30 days, indicating decline of 37.6% from the year-ago quarter.

The consensus mark for revenues is currently pegged at $3.1 billion, suggesting 9.9% decrease 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 80.4%.

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 are expected to have impacted Fox’s fiscal third-quarter advertising revenues, which accounts for over 50% of the company’s top line.

Nonetheless, improved 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 sporting events globally.

Fox’s portfolio strength across entertainment, sports and news content is expected to drive the company’s third-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 Channel (FNC) finished the month of February as the top-rated network in all of cable in primetime, according to Nielsen Media Research and remained the top-rated network in all of cable in primetime total viewers since inauguration.

In total day viewership, FNC delivered 1.3 million viewers for the month of February, 210K in the 25-54 age group, and 119K in the 18-49 age group, outpacing sports-focused ESPN in both dayparts with total viewership.

Further, FOX News Audio added five new podcasts to its programming catalogue, debuting each week from Mar 8.

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

Key Development in Q3

On Mar 18, Fox Corporation announced a new and expanded media rights agreement with the National Football League (NFL) for the next 11 years through the 2033 season.

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 +13.40% and a Zacks Rank #1. 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:

Playtika Holding Corp. (PLTK - Free Report) has an Earnings ESP of +18.87% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.

AMETEK (AME - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #3.

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