FOXA Q2 Earnings Surpass Expectations, Revenues Increase Y/Y

Core Insights - Fox Corporation reported strong second-quarter fiscal 2025 results with adjusted earnings per share of 96 cents, exceeding the Zacks Consensus Estimate by 47.69% and reflecting a year-over-year increase of 182.4% [1] - Total revenues for the quarter rose 20% year over year to $5.08 billion, surpassing the consensus mark by 3.9$1.9 billion, driven by 9% growth in the Television segment and 4.4% growth in the Cable Network Programming segment [2] - Advertising revenues, which made up 47.7% of total revenues, grew by 21% year over year to $2.42 billion, influenced by higher political advertising, increased MLB postseason ratings, NFL pricing, and digital growth from the Tubi AVOD service [3] - Other revenues surged 69.9$756 million, representing 14.9% of total revenues [3] Segment Performance - Cable Network Programming revenues, constituting 42.6% of total revenues, rose 30.6% year over year to $2.16 billion, with advertising revenues growing by 32.2$2.96 billion, with advertising revenues jumping 18.6% [5] Operating Performance - Operating expenses increased by 11.3% year over year to $3.77 billion, but as a percentage of revenues, they contracted by 580 basis points to 74.4$525 million, with SG&A as a percentage of revenues contracting by 140 basis points to 10.3% [7] - Total adjusted EBITDA surged 123.1% year over year to $781 million, with an adjusted EBITDA margin expanding by 710 basis points to 15.4$3.32 billion in cash and cash equivalents, down from $4.05 billion as of September 30, 2024, with long-term debt standing at$6.6 billion [8] Stock Performance - Fox currently holds a Zacks Rank 2 (Buy), with shares gaining 65.4% over the past year compared to the Zacks Consumer Discretionary sector's growth of 14.7% [9]