Twenty-First Century Fox Earnings: Here’s Why Investors are Excited Now

Twenty-First Century Fox (NASDAQ:FOXA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4%.

Twenty-First Century Fox Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.13% to $0.31 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Decreased 13.84% to $7.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Twenty-First Century Fox reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.34. It beat the average revenue estimate of $7.12 billion.

Quoting Management: Chairman and Chief Executive Officer Rupert Murdoch said: “With the Separation complete 21st Century Fox launches as a distinct public company with its own identity, its own strategy and its own growth and capital plan. Although a significant amount of time and effort was spent over the past twelve months on this Separation, we never lost focus on the operation of our businesses. The Company not only delivered strong earnings and revenue growth led by our channels businesses, we also positioned ourselves for future success with strategic investments in our global channels businesses, including the acquisitions of Sports Time Ohio and an ownership stake in the YES Network, as well as the announcement of the impending launches of Fox Sports 1 and FXX. As a result of these advances, 21st Century Fox is poised to deliver continued innovation for our customers as well as sustained growth and long-term value for our stockholders.”

Key Stats (on next page)…

Revenue decreased 24.39% from $9.54 billion in the previous quarter. EPS decreased 13.89% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.45 to a profit $0.37. For the current year, the average estimate has moved down from a profit of $1.66 to a profit of $1.40 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)