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Fox (FOXA) to Report Q4 Earnings: What's in the Offing?

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

For the quarter, the Zacks Consensus Estimate for earnings is pegged at 78 cents per share, down 4.9% in the past 30 days. The figure indicates 20% growth from the year-ago reported figure.

The consensus mark for revenues, pegged at $3.06 billion, implies a 5.73% increase from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average earnings surprise being 305.59%.

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 fourth-quarter fiscal 2022 results are expected to benefit from steady affiliate revenue growth. In the last reported quarter affiliate fee revenues rose 4.5% year over year, reaching $1.79 billion, driven by healthy growth in the FOX Cable Networks and Television segments.

The Zacks Consensus Estimate for affiliate fee revenues is currently pegged at $1.74 billion, indicating growth of 4.8% year over year.

Advertisers, however, continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on this Zacks Rank #4 (Sell) company’s ad revenue growth in the to-be-reported quarter.

The Zacks Consensus Estimate for advertising revenues is currently pegged at $1.06 billion, indicating growth of 8.7% year over year.

In the last reported quarter, advertising increased 9.1% to $1.3 billion, driven by continued growth at Tubi and continued strength in pricing at the FOX Network.

Notably, Fox’s investments in the expansion of its network and offerings are expected to have aided growth in ratings in the to-be-reported quarter.

FOX Weather, FOX News Media’s free ad-supported streaming television weather service, expanded its reach to FOX News Audio. Since May 2, FOX Weather has launched a new daily podcast and offers an hourly weather update on FOX News Headlines 24/7, which is expected to have boosted user growth on the platform in the to-be-reported quarter.

In the to-be-reported quarter, FOX News Audio expanded its affiliate partnership with Audacy (AUD - Free Report) and migrated the network’s linear radio talk radio streaming content to Audacy’s cloud-based distribution and monetization platform for live and on-demand audio streams, AmperWave. The agreement expansion will make Audacy the exclusive third-party ad sales representation of FOX News Audio’s streaming inventory.

Fox announced that according to Nielsen (NLSN - Free Report) FOX Business Network ended the month of April as the number one network in Business Day viewers for the first time since January 2020.

Fox also announced that per Nielsen, FOX News Channel was deemed as the cable’s most-watched network in primetime and total day viewers.

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.

On Jun 14, FOX Entertainment owned free ad-supported streaming service, Tubi announced that it has entered into an exclusive multi-year slate deal with Lionsgate Holdings (LGF.A - Free Report) to become the premier AVOD home to 30 new feature films. The partnership also includes over 200 Lionsgate fan-favorite titles that will be added to Tubi’s popular library.

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

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