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Fox (FOXA) to Report Q3 Earnings: What's in the Offing?

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Fox (FOXA - Free Report) is set to report third-quarter fiscal 2022 results on May 10.

For the quarter, the company's current Zacks Consensus Estimate for earnings is pegged at 85 cents per share, unchanged in the past 30 days. The figure indicates a 3.41% decline from the year-ago reported figure.

The consensus mark for revenues is pegged at $3.40 billion, suggesting a 5.65% increase from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 319.70%.

Let’s see how things have shaped up for this announcement.

Fox Corporation Price and EPS Surprise

 

Fox Corporation Price and EPS Surprise

Fox Corporation price-eps-surprise | Fox Corporation Quote

 

Factors to Consider

Fox’s third-quarter fiscal 2022 results are expected to have benefited from a healthy affiliate revenue growth and a strong advertising marketplace.

In the last reported quarter, affiliate fee revenues rose 11.2% year over year reaching $1.69 billion, driven by healthy growth in the FOX Cable Networks and Television segments. Advertising revenues increased 5.5% year over year to $2.41 billion, driven by the continued growth at Tubi. The trend is likely to have continued in the to-be-reported quarter.

The Zacks Consensus Estimate for affiliate fee revenues is currently pegged at $1.80 billion, indicating growth of 4.88% year over year.

Fiscal third-quarter advertising revenue growth is expected to have been accelerated, driven by the recovering ad demand and spending in the addressable market.

Fox Corporation-owned FOX Audio Network’s new advertising and distribution deal with Megaphone, a Spotify (SPOT - Free Report) company, is also expected to have boosted advertising revenues.

Per the deal, FOX Audio Network will use Spotify’s Megaphone as the exclusive hosting platform for the former’s expanding portfolio of original audio content.

The Zacks Consensus Estimate for advertising revenues is currently pegged at $1.32 billion, indicating growth of 10.3% year over year.

Fox’s investments in the expansion of its network and offerings are expected to have aided this Zacks Rank #3 (Hold) company’s growth in ratings in the to-be-reported quarter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

According to Comscore (SCOR - Free Report) , FOX News Digital ended March as the top-performing news brand in the competitive set-in multiplatform minutes.

Comscore also reported FOX News Digital ended third-quarter fiscal 2022 reaching 9.1 billion total multiplatform minutes, 4.6 billion total multiplatform views, and averaging 85 million monthly multiplatform unique visitors.

Moreover, as per Nielsen Media Research, FOX News Channel finished third-quarter fiscal 2022 as cable’s most-watched network in primetime and total day viewers.

Nielsen also reported that FOX Business Network (FBN) ended the third quarter of fiscal 2022 with Kudlow hosted by Larry Kudlow, delivering the highest-rated business program on television and beating CNBC for the second consecutive quarter.

Moreover, Fox’s focus on expanding its digital business segments is likely to have boosted the company’s prospects in the to-be-reported quarter.

Fox announced the expanded distribution of FOX Weather live video streams across multiple platforms, including YouTube TV, Amazon News, The Roku Channel, fuboTV and Xumo.

FOX News International announced its expanded distribution on Roku. Beginning Jan 31, the direct-to-consumer platform must have witnessed higher reach across Chile, Costa Rica, Germany, Ireland, Mexico, Panama and the United Kingdom.

Key Q3 Highlights

Fox launched ATLAS, a new proprietary technology solution bringing contextual alignment to digital video. ATLAS enables enhanced contextual targeting and enables advertisers to connect with the most relevant content in the right environment in real-time, achieving greater transparency and brand suitability in video advertising.

Fox Corporation-owned Fox Sports announced the official launch of the Fox Sports Podcast Network. As part of the launch, three podcasts have been developed, namely, The Skip Bayless Show, What’s Wright with Nick Wright and Wesley, which will be premiered in the upcoming months.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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