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Investing.com - UBS raised its price target on FOX Corp. (NASDAQ:FOXA) to $76.00 from $65.00 on Friday, while maintaining a Buy rating following the company’s quarterly results that exceeded expectations. The new target represents significant upside from FOX’s current price of $64.63, with shares already trading near their 52-week high of $66.56.
FOX reported stronger-than-anticipated advertising revenue, with management describing the current advertising market as the most "robust" for the company in some time. Total distribution grew 3% year-over-year in the fiscal first quarter, while total advertising increased 6% despite challenging political advertising and cable news ratings comparisons. According to InvestingPro data, FOX boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. This metric is one of 14 bullish signals currently highlighted for the company.
The streaming platform Tubi reached profitability during the quarter, and while some seasonality is expected going forward, management indicated digital losses could be lower than its previous $350 million guidance for fiscal 2026. This achievement contributes to FOX’s impressive financial performance, with the company generating $16.3 billion in revenue over the last twelve months.
UBS has raised its full-year estimates and now forecasts $3.34 billion of EBITDA in fiscal 2026, up from its prior estimate of $3.22 billion, though down from an expected $3.62 billion in fiscal 2025 due to the absence of high-margin political advertising. This outlook aligns with broader analyst sentiment, as seven analysts have recently revised their earnings expectations upward. FOX currently trades at an attractive PEG ratio of 0.19, suggesting the stock is undervalued relative to its growth potential.
FOX also announced a $1.5 billion accelerated share repurchase program, representing approximately 5% of the company’s market capitalization, scheduled to commence on November 1. This buyback comes as FOX shares have delivered impressive returns, with a 57.45% gain over the past year and 36.12% year-to-date. InvestingPro analysis indicates the stock is currently fairly valued based on its comprehensive Fair Value model, which considers over 70 financial metrics. For deeper insights into FOX’s valuation and detailed financial analysis, check out the Pro Research Report available exclusively to subscribers.
In other recent news, Fox Corporation delivered a strong fiscal first quarter of 2026, surpassing Wall Street’s expectations. The company reported an adjusted earnings per share (EPS) of $1.51, significantly higher than the projected $1.11, resulting in a 36.04% earnings surprise. Fox’s revenues also exceeded forecasts, reaching $3.74 billion compared to the anticipated $3.57 billion, marking a 4.76% revenue surprise. These results highlight Fox Corporation’s robust financial performance in the recent quarter. Additionally, the company’s stock saw a notable increase in pre-market trading. These developments reflect positively on Fox Corporation’s current financial standing. Investors and analysts are likely to keep a close watch on Fox Corporation following these results.
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