Back to top

Image: Shutterstock

Fox (FOXA) Signs Trace Gallagher as Fox News Night Anchor

Read MoreHide Full Article

Fox Corporation’s (FOXA - Free Report) Fox News Channel (“FNC”) recently announced that Trace Gallagher is set to anchor the show Fox News @ Night from Oct 3.

Trace Gallagher is well known for covering the biggest breaking news stories, including the death of Queen Elizabeth II and Russia’s invasion of Ukraine. His introduction to Fox News @ Night is expected to improve the popularity of the show.

The show, which interviews leading newsmakers to discuss current affairs, has regularly outpaced its cable news competition across the board as it averaged more than 1.1 million viewers in the fourth quarter of fiscal 2022.

Overall, FNC has been performing well as it once again closed August as the best-performing news brand for 18 consecutive months, reaching more than 2.9 billion total multiplatform minutes, 1.5 billion total multiplatform views and 77 million multiplatform unique visitors, per Comscore data.

Will Fox’s Cable Networks Survive Cord-Cutting?

The Cable Network Programming segment, which generates 44% of Fox’s revenues, witnessed 7% year-over-year growth as affiliate and advertising fees increased.

The increase in advertising revenues was primarily due to higher pricing at FOX News Media and an increase in the number of live events at the national sports networks.

Fox Sports has gained exclusive rights to broadcast certain premier MLB content, including the World Series and the All-Star Game, through the 2028 MLB season. The company also ventured into sports betting through the launch of FOX Bet in 2020.

Fox sports division also leads the upfront market as it sold more NFL Sunday advertising in the current upfront market than it did across Sunday and Thursday combined in the prior year's market.

Fox Business is also benefiting from a growing user base as it achieved 151 million multiplatform views last month. Fox Business surpassed CNN Business and MSNBC in multiplatform views for the fifth straight month.

However, Fox is suffering from a shift in consumer behavior.

Consumer preferences have shifted toward subscription video on demand and advertising-based video on demand from multichannel video programming distributors, which Fox is currently using to deliver broadcast and cable networks to consumers.

The cable business faces a serious threat from OTT platforms like Netflix (NFLX - Free Report) due to cord-cutting, which does not bode well for Fox.

Netflix is set to launch its ad-tier subscription for customers by the end of this year. This low-cost subscription is expected to gain traction and the streaming giant currently expects to gain one million paid subscribers in the third quarter of 2022.

Fox also faces competition for ad dollars, which forms its main source of revenue. This is further intensified by offerings from tech giants like Meta Platform’s (META - Free Report) Facebook, Twitter, Google, YouTube and Amazon, as they too have been fighting for ad dollars.

Meta benefits from increasing mobile ad revenues and growing adoption of stories by advertisers across Instagram.

Zacks Rank & Stock to Consider

FOXA has a Zacks Rank #3 (Hold), currently.

A better-ranked stock in the Consumer & Discretionary sector is BJ’s Wholesale Club (BJ - Free Report) , with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s Wholesale Club’s shares are 12.9% up on a year-to-date basis against the sector’s decline of 35.3%. The Zacks Consensus Estimate for BJ’s fiscal 2023 earnings has risen 11.2% to $3.60 per share over the past 30 days.

Published in