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On Tuesday, UBS analyst John Hodulik maintained a Buy rating on FOX Corporation, keeping the price target steady at $61.00 for the NASDAQ-listed company’s stock. According to InvestingPro data, FOX currently trades at an attractive P/E ratio of 12.4 and shows GREAT financial health with an overall score of 3.21. Hodulik highlighted FOX’s third fiscal quarter performance, noting that revenues and EBITDA exceeded expectations in all segments.
FOX Corporation, with a market capitalization of $24.67 billion, reported a year-over-year revenue increase of 27%, achieving $4.37 billion, surpassing both UBS’s estimate of $4.22 billion and the consensus on the Street of $4.19 billion. EBITDA for the quarter was reported at $856 million, a slight 4% decrease from the previous year but still ahead of UBS’s projection of $776 million and the Street’s expectation of $756 million. The company’s trailing twelve-month revenue growth stands at 15.7%.
The adjusted earnings per share (EPS) for FOX came in at $1.10, which was not only higher than UBS’s estimate of $0.89 and the Street’s forecast of $0.90, but also marginally above the $1.09 reported last year. The company also demonstrated strong free cash flow (FCF) at $1.94 billion, significantly outperforming UBS’s anticipation of $1.52 billion and the Street’s prediction of $1.48 billion.
Additionally, FOX Corporation’s share repurchase activity for the quarter aligned with expectations, totaling $250 million. The maintained Buy rating and price target reflect UBS’s positive outlook on the company’s stock following the reported financial results.
In other recent news, FOX Corporation reported its third-quarter earnings for fiscal year 2025, exceeding market expectations with an adjusted earnings per share (EPS) of $1.10, which was higher than the forecasted $0.89. The company achieved a revenue of $4.37 billion, surpassing the anticipated $4.14 billion, marking a significant 27% increase year-over-year. This impressive performance was largely driven by a 65% rise in advertising revenue, attributed to the Super Bowl LIX broadcast and the ongoing success of Tubi, FOX’s streaming service. Analyst Kenneth Leon from CFRA raised the price target for FOX shares to $59, maintaining a Buy rating, while Loop Capital Markets increased their target to $64, also maintaining a Buy rating, reflecting confidence in FOX’s financial health and strategic direction.
Additionally, Bernstein SocGen Group maintained a Market Perform rating with a price target of $53, highlighting FOX’s effective strategy and growth in affiliate fee revenue. FOX’s strategic focus on news and sports content has been a differentiator, with Fox News achieving its highest quarterly cable news share. The company also launched a new streaming service, Fox One, aimed at cord-cutters, further expanding its digital platform offerings. The combination of these strategic initiatives and financial results underscores FOX Corporation’s ability to navigate industry challenges and maintain a strong market position.
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