TLDR

Q1 revenue rose 26.8% to $4.37 billion, beating estimates.
EPS came in at $1.10, 22.6% above analyst forecasts.
Operating margin slipped to 10.8% from 22.9% a year ago.
Shares jumped over 5% to $49.10 after results.
Next earnings date is May 12, 2025.

Fox Corporation (NASDAQ: FOX) saw its shares jump 5.09% to $49.10 in early trading as of writing, after delivering stronger-than-expected fiscal Q1 2025 results. The media giant, known for its cable news and broadcasting platforms, topped both revenue and profit forecasts ahead of its next earnings report on May 12, 2025.

Fox Corporation (FOX) Stock

Q1 Beats Across the Board

For the quarter, Fox reported revenue of $4.37 billion, marking a 26.8% year-on-year surge and outpacing Wall Street estimates of $4.19 billion. Non-GAAP earnings per share reached $1.10, exceeding the $0.90 consensus by 22.6%. Adjusted EBITDA came in at $856 million, 16.5% above expectations.

Fox Corporation, $FOXA, Q3-25. Results:
🟢 +2.3% Pre-Market

📊 Adj. EPS: $1.10 🟢
💰 Revenue: $4.37B 🟢
📈 Net Income: $354M
🔎 Strong ad growth from Super Bowl LIX and digital platforms like Tubi boosted revenue, despite increased content costs. pic.twitter.com/ZddBgI2WKF

— EarningsTime (@Earnings_Time) May 12, 2025

Advertising and affiliate fees remain Fox’s main revenue drivers, contributing 46.6% and 45.9% respectively. While these segments had shown modest mid-single-digit growth in recent years, this quarter’s spike suggests a rebound in demand, likely boosted by higher ad spending and retransmission fees.

Margins Show Pressure Despite Top-Line Growth

Despite the solid revenue print, Fox’s operating margin contracted sharply to 10.8% from 22.9% in the same quarter last year. The dip reflects rising expenses, which outpaced revenue gains, impacting the company’s overall efficiency this quarter.

Historically, Fox has maintained an operating margin averaging 17.4% over the last two years, which is considered strong for the consumer discretionary sector. However, this quarter’s margin squeeze raises questions about future profitability trends, especially as costs rise across media operations.

Long-Term Returns Outperform the Market

Looking beyond the quarter, Fox stock has delivered robust returns. Over the past year, shares are up 53.56%, far outperforming the S&P 500’s 8.55% gain. Its five-year total return stands at 95.45%, slightly ahead of the broader index. Year-to-date, FOX has gained 2.67%, outpacing the S&P 500’s negative return.

Earnings per share have grown at a 12.1% compounded annual rate over the last five years, signaling profitable expansion even as revenue growth has been slower at 5.4% annually. However, Wall Street now expects a 10.1% decline in full-year EPS to $4.41, hinting at some upcoming demand challenges.

Outlook Mixed Despite Strong Start to 2025

While Fox’s Q1 results outshined estimates, analyst projections suggest revenue may decline 5.2% over the next 12 months. This expected slowdown could stem from shifting advertising trends and evolving consumer preferences in the media landscape.

Still, with strong cash flow margins and a market cap near $22 billion, Fox remains well-positioned in the competitive media sector. Investors will be watching closely when the company reports again on May 12, 2025, for signs of whether the current momentum can be sustained.

The post Fox Corporation (FOX) Stock: Surges as Q125 Revenue and EPS Beat Forecasts appeared first on CoinCentral.

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Filed under: News - @ May 12, 2025 2:27 pm