Fox Corporation: A Strong Quarter Ahead, Analysts Expect

Fox Corporation (FOXA) is set to host a live audio webcast on February 4, 2025, at 8:30 a.m. ET / 5:30 a.m. PT, to discuss its second quarter fiscal 2025 financial results. The company will release its financial results approximately 30 minutes earlier, at 8:00 a.m. ET / 5:00 a.m. PT on the same day. Both the live presentation and archived webcast will be accessible to investors through the company's investor relations website at investor.foxcorporation.com.

As the earnings season approaches, analysts have been busy updating their estimates for Fox Corporation's performance. Here's what investors can expect from the upcoming webcast and the key financial metrics to focus on:

1. Earnings per Share (EPS): Analysts expect FOXA to report a profit of $0.64 per share on a diluted basis, up 88.2% from $0.34 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates over the past four quarters, with an average earnings surprise of 72.3%. Investors should pay close attention to the actual EPS reported and compare it to the consensus estimate.
2. Revenue Growth: In Q1 2025, FOXA reported revenue of $3.56 billion, up 11% year-over-year, surpassing the consensus estimate of $3.37 billion. Investors should monitor the company's revenue growth trends and compare them to analyst expectations. Strong revenue growth indicates the company's ability to generate more sales and drive profitability.
3. Adjusted EBITDA: Adjusted EBITDA is a measure of the company's operating performance, excluding non-cash and non-operating items. In Q1 2025, FOXA's adjusted EBITDA reached $1.05 billion, a 21% increase from the prior year, driven by higher revenue, partially offset by increased expenses. Investors should monitor the company's adjusted EBITDA growth and its relationship with revenue growth.
4. Free Cash Flow (FCF) and Operating Cash Flow (OCF): FCF and OCF are important metrics for assessing the company's cash generation ability. Investors should compare the company's FCF and OCF to its net income and adjusted EBITDA to ensure that the company is generating sufficient cash to support its operations and growth initiatives.
5. Debt-to-Equity Ratio (D/E): The D/E ratio measures the company's leverage, indicating how much debt it has relative to its equity. A lower D/E ratio suggests that the company has a more conservative capital structure. Investors should monitor the company's D/E ratio to assess its financial health and risk profile.
6. Price-to-Earnings Ratio (P/E) and Forward P/E: The P/E ratio is a valuation metric that measures the company's stock price relative to its earnings per share. The forward P/E ratio is a more forward-looking valuation metric that uses estimated earnings for the next fiscal year. Investors should compare the company's P/E and forward P/E ratios to its historical averages and industry peers to assess its valuation.




During the webcast, Fox Corporation's executives may highlight several strategic initiatives and market trends that could impact future growth. Some key points they might discuss include:

1. Expansion of Streaming Services and Digital Platforms: Fox Corporation has been investing in and expanding its streaming services, such as Tubi, to reach a broader audience and tap into the growing demand for digital content. Executives may discuss the company's plans to further grow Tubi's user base and increase engagement, as well as any new streaming services or partnerships in the pipeline.
2. Investment in Live News and Sports Content: Fox Corporation has been focusing on investing in live news and sports content, which has been driving strong demand and viewership. Executives may highlight the company's plans to continue investing in high-quality news and sports content, as well as any upcoming events or initiatives that could drive viewership and engagement.
3. Growth in Affiliate Fees and Advertising Revenues: Fox Corporation has been experiencing strong growth in affiliate fees and advertising revenues, driven by the popularity of its content and brands. Executives may discuss the company's strategies to further grow affiliate fees and advertising revenues, such as expanding distribution, increasing viewership, and leveraging data and technology to improve targeting and monetization.
4. Expansion into New Markets and Verticals: Fox Corporation has been exploring opportunities to expand into new markets and verticals, such as international expansion and the growth of its Credible segment. Executives may discuss any new initiatives or partnerships in these areas, as well as the potential for future growth.
5. Investment in Technology and Innovation: Fox Corporation has been investing in technology and innovation to improve its content creation, distribution, and monetization. Executives may discuss any new technologies or platforms the company is exploring, as well as how these investments could drive future growth.

By focusing on these key financial metrics and strategic initiatives, investors can gain a comprehensive understanding of Fox Corporation's performance and make informed investment decisions. The upcoming webcast is an excellent opportunity for investors to engage with the company's executives and learn more about its plans for future growth.