FOXA Q3 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Gain

Core Insights - Fox Corporation (FOXA) reported third-quarter fiscal 2025 adjusted earnings per share of $1.10, exceeding the Zacks Consensus Estimate by 18.28$4.37 billion, surpassing the consensus mark by 5.3% [1] - The company experienced significant growth in advertising revenues, which increased 64.9% year over year to $2.03 billion, driven by Super Bowl LIX and digital growth from the Tubi AVOD service [2] Revenue Breakdown - Affiliate fees, accounting for 45.9$2 billion, supported by 4% growth in the Television segment and 3% in the Cable Network Programming segment [1] - Cable Network Programming revenues increased 11.1% year over year to $1.63 billion, with advertising revenues growing 25.7$2.70 billion, with advertising revenues jumping 77.2% [5] Operating Performance - Operating expenses increased 44.6% year over year to $2.96 billion, with expenses as a percentage of revenues expanding 840 basis points to 67.8$551 million, but as a percentage of revenues, they contracted 220 basis points to 12.6% [7] - Total adjusted EBITDA decreased 3.9% year over year to $856 million, with an adjusted EBITDA margin contracting 630 basis points to 19.6$4.81 billion in cash and cash equivalents, up from $3.32 billion as of December 31, 2024 [8] - The company's long-term debt stood at$600 million as of March 31, 2025 [8] Earnings Estimates - The Zacks Consensus Estimate for FOXA's 2025 earnings is currently $4.45 per share, indicating a year-over-year growth of 29.74$15.88 billion, reflecting a year-over-year growth of 13.56% [10] Stock Performance - Following the strong third-quarter results, FOXA shares rose 6.33% in pre-market trading, with a year-to-date gain of 3.5% compared to the Zacks Consumer Discretionary sector's growth of 0.2% [3]