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Fox Corporation FOXA reported third-quarter fiscal 2025 adjusted earnings per share of $1.10, which beat the Zacks Consensus Estimate by 18.28%. The figure increased 0.9% year over year.
Revenues increased 26.8% year over year to $4.37 billion, beating the consensus mark by 5.3%. Affiliate fees (45.9% of total revenues) increased 3.5% year over year to $2 billion, driven by 4% growth in the Television segment and 3% growth in the Cable Network Programming segment.
Advertising revenues (46.6% of total revenues) increased 64.9% year over year to $2.03 billion, primarily due to the impact of Super Bowl LIX, continued digital growth led by the Tubi AVOD service, and stronger news ratings and pricing.
Other revenues (7.5% of total revenues) surged 20.4% year over year to $330 million.
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Following a strong third-quarter fiscal 2025, FOXA shares rose 6.33% in the pre-market trading. Shares of FOXA have gained 3.5% in the year-to-date period compared with the Zacks Consumer Discretionary sector’s growth of 0.2%.
Cable Network Programming revenues (37.4% of total revenues) increased 11.1% year over year to $1.63 billion. Advertising revenues grew 25.7%, whereas revenues from Affiliate fees rose 2.8% year over year. Other revenues increased 79.2% on a year-over-year basis, primarily due to higher sports sublicensing revenues.
Television revenues (61.9% of total revenues) rose 39.5% from the year-ago quarter’s figure to $2.70 billion. Advertising revenues jumped 77.2% year over year. Affiliate fees grew 4.3% year over year, led by higher rates at both the company's owned and operated stations, as well as third-party FOX affiliates. Other revenues increased 3% year over year, primarily due to higher content revenues.
In the third quarter of fiscal 2025, operating expenses increased 44.6% year over year to $2.96 billion. As a percentage of revenues, operating expenses expanded 840 basis points (bps) to 67.8%. The increase in expenses was primarily due to higher sports programming rights amortization and production costs, and higher digital costs.
Selling, general & administrative (SG&A) expenses increased 8% year over year to $551 million. As a percentage of revenues, SG&A expenses contracted 220 bps to 12.6%.
Total adjusted EBITDA plunged 3.9% year over year to $856 million. Adjusted EBITDA margin contracted 630 bps to 19.6%.
Cable Network Programming EBITDA rose 7.2% year over year to $878 million. Television reported an adjusted EBITDA of $60 million compared with $145 million in the year-ago quarter.
As of March 31, 2025, Fox had $4.81 billion in cash and cash equivalents compared with $3.32 billion as of Dec. 31, 2024. As of March 31, 2025, the company's long-term debt was $600 million.
The Zacks Consensus Estimate for FOXA’s 2025 earnings is currently pegged at $4.45 per share, which has declined by 0.6% over the past 30 days and indicates year-over-year growth of 29.74%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar)
The consensus mark for FOXA’s 2025 revenues is currently pegged at $15.88 billion, indicating year-over-year growth of 13.56%.
Fox currently carries a Zacks Rank #2 (Buy).
Advance Auto Parts AAP, Alibaba BABA and Canada Goose GOOS are some other top-ranked stocks that investors can consider in the broader sector. While AAP sports a Zacks Rank #1 (Strong Buy), BABA and GOOS presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advance Auto Parts shares have lost 29.7% year to date. AAP is set to report its first-quarter 2025 results on May 22.
Alibaba shares have gained 57.6% year to date. BABA is set to report its fourth-quarter fiscal 2025 results on May 15.
Canada Goose shares have lost 9% year to date. GOOS is set to report its fourth-quarter fiscal 2025 results on May 21.
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This article originally published on Zacks Investment Research (zacks.com).
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