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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 2020 results on May 6.

The Zacks Consensus Estimate for earnings in the fiscal third quarter has moved a penny south to 72 cents per share over the past 30 days, implying a 5.3% decline from the figure reported in the year-ago quarter.

Moreover, the consensus mark for revenues is currently pegged at $3.36 billion, suggesting 21.9% growth from the figure reported in the year-ago quarter.

Notably, Fox’s stellar surprise history shows estimate beats in all the trailing four quarters, the average being 98.1%.

Fox Corporation Price and EPS Surprise

Fox Corporation Price and EPS Surprise

Fox Corporation price-eps-surprise | Fox Corporation Quote

 

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

Factors to Consider

Fox’s third-quarter fiscal 2020 results are expected to reflect the negative impact of the coronavirus. Lower ad demand and spending is anticipated to have hurt advertising revenues, which accounts for more than 50% of the company’s topline.

Moreover, cancellation of major sporting events globally is expected to have dented advertising revenues, partially offset by increased political-ad spending in the to-be-reported quarter.

Further, Fox’s investments in expanding its network are driving the ratings, a trend that most likely continued in the to-be-reported quarter. Additionally, portfolio strength across entertainment and news content is expected to have aided viewership.

In fact, the first quarter was solid for FOX News Digital.  Average monthly multiplatform unique visitors were 119.8 million, total multiplatform views were 5.7 billion and total multiplatform minutes were 13.2 billion, per Comscore data, cited by Fox.

Moreover, the network saw double-digit increases in March on a year-over-year basis including multiplatform views (up 33%), multiplatform unique visitors (up 29%) and multiplatform minutes (up 26%). The network’s comprehensive coverage of coronavirus propelled traffic and engagement to all-time highs.

Key Q3 Developments

On Mar 2, Fox announced the completion of its previously-announced purchases of Seattle stations KCPQ-TV FOX 13 and KZJO-TV MyNetworkTV 22 as well as Milwaukee station WITI FOX 6 from Nexstar Media Group.

On Feb 14, Fox announced a multi-year agreement with Cox Media Group that renews FOX Network affiliations for four stations operated by CMG including WFXT in Boston, MA; WHBQ in Memphis, TN: WFOX in Jacksonville, FL and KOKI in Tulsa, OK.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the care here.

Fox has an Earnings ESP of +0.83% and a Zacks Rank #4. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Etsy (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify (SHOP - Free Report) has an Earnings ESP of +5.44% and is #2 Ranked.

ANSYS (ANSS - Free Report) has an Earnings ESP of +2.14% and a Zacks Rank #3.



5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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ANSYS, Inc. (ANSS) - free report >>

Fox Corporation (FOXA) - free report >>

Etsy, Inc. (ETSY) - free report >>

Shopify Inc. (SHOP) - free report >>

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