- Fox Corporation (FOXA) Presents at MoffettNathanson's Media, Internet & Communications Conference Transcript
May 13, 2026 · seekingalpha.com
Fox Corporation (FOXA) Presents at MoffettNathanson's Media, Internet & Communications Conference Transcript
- FOX (FOXA) Reports Earnings Tomorrow: What To Expect
May 13, 2026
Cable news and media network Fox (NASDAQ:FOXA) will be announcing earnings results this Monday morning. Here’s what to look for.
FOX beat analysts’ revenue expectations last quarter, reporting revenues of $5.18 billion, up 2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is FOX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting FOX’s revenue to decline 12.7% year on year, a reversal from the 26.8% increase it recorded in the same quarter last year.FOX Total Revenue
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FOX rarely misses Wall Street’s revenue estimates.
Looking at FOX’s peers in the consumer discretionary - broadcasting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. E.W. Scripps’s revenues decreased 1.4% year on year, meeting analysts’ expectations, and Paramount reported revenues up 2.2%, topping estimates by 1%. E.W. Scripps traded down 3.1% following the results while Paramount was also down 4.1%.
Read our full analysis of E.W. Scripps’s results here and Paramount’s results here.
There has been positive sentiment among investors in the consumer discretionary - broadcasting segment, with share prices up 5% on average over the last month. FOX is up 3.2% during the same time and is heading into earnings with an average analyst price target of $71 (compared to the current share price of $62.95).
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- Fox Outperformed in Fiscal Q3 Given Sports and News Focus, UBS Says
May 12, 2026
Fox's (FOXA) fiscal Q3 results outperformed as the company continues to benefit from its sports and
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- Share Repurchases and More Gains Ahead: The Bullish Price Surprise in Fox Stock Is Worth a Second Look Here
May 12, 2026
In the least surprising news of the day, Bloomberg reported that eBay (EBAY) has rejected GameStop's (GME) $56 billion takeover offer.
As someone said about the cash-and-stock deal, the stock portion would require GameStop to issue $28 billion in shares to pay for it. The video game and collectibles retailer’s stock is currently worth $10.3 billion. Forget the debt component; the stock portion of the transaction screamed dead on arrival.
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But I digress.
Today's commentary is about bullish and bearish price surprises. Given the market's momentum continues to confound me on valuation grounds, I'd like to examine a stock that remains relatively cheap but was one of Monday’s top 10 bullish price surprises.
I'm referring to Fox Corp’s Class A (FOXA) and Class B (FOX) shares, which both gained more than 7% yesterday on good Q3 2026 results, leading to standard deviations of 3.74 and 3.85, respectively.
I’ve watched it for a while now, thinking, how can it be so cheap? The Murdoch-controlled company -- CEO Lachlan Murdoch, Rupert Murdoch’s son, held 36.4% of the Class B voting shares as of Sept. 25, 2025, effectively controlling the business, as the Class A shares don’t carry voting rights -- owns several media properties, including Fox News and Fox Sports.
Business is good. But is it worth owning for the long haul? Let me dwell on that.
The Reason for Low Valuation
As a Canadian, I’m not a big fan of Fox News’ interpretation of what’s happening in the world today, but that doesn’t mean it’s uninvestable, far from it. Businesses such as Philip Morris (PM)have been good investments for decades because of their strong cash flow generation, despite selling products that routinely make people sick and, in many cases, die.
As I mentioned in the introduction, Fox reported its Q3 2026 results on Monday. Revenues and profits exceeded analyst expectations, but the quarter had some issues. It wasn’t perfect.
While its revenues of $3.99 billion were $180 million higher than the analyst consensus, they were 8.6% lower year over year. On the bottom line, its adjusted earnings per share were $1.32, 35 cents better than analyst expectations and 22 cents higher than last year.
Story Continues
The big reason for the decline in revenue was the absence of a Super Bowl in the quarter. In the third quarter of 2025, it reported advertising revenue from Super Bowl LIX, which set a record with an average of 127.7 million TV and streaming viewers during the broadcast. Fox will next televise the Super Bowl in February 2029.
That’s a loss of revenue in 3 out of 4 years, which isn’t ideal for attracting long-term investors. That’s one reason for a low valuation.
The second reason is also tied to the Super Bowl, as the company has hitched its wagon to linear television. Advertisers are moving away from broadcast and toward streaming to engage their customers.
Of course, this move away from linear TV has been going on for more than a decade. The Globe and Mail, Canada’s national newspaper, published an article in January 2014 titled How Fox aims to fix the traditional TV model.
It’s an interesting read that speaks to Fox management’s recognition at the time that traditional TV and, by extension, advertising, were completely changing how programs were made, when they reached your television, and how advertisers engaged their customers. It’s still changing.
Finally, the sale of Fox’s entertainment assets to Disney (DIS)for $71 billion in March 2019 left Fox less diversified amid changing tides in entertainment and media.
That’s reduced the attraction of owning Fox relative to other entertainment businesses.
For example, according to S&P Global Market Intelligence, Fox’s enterprise value (EV) is 8.2 times its EBITDA (earnings before interest, taxes, depreciation, and amortization), compared with 10.8x for Disney.
People are willing to pay more for Disney because it offers more entertainment, including Disney+, its successful streaming service, Disney Resorts and Cruises, and much more.
Fox is definitely the ugly duckling of the two.
Share Prices Follow Earnings
If you bought FOXA shares after the sale of the company’s entertainment assets to Disney, your stock has appreciated by 62% over seven years, a CAGR (compound annual growth rate) of 7.2%. The S&P 500 over this period has a 17.7% CAGR.
I don’t think you can argue that it’s delivered mediocre performance for shareholders since the breakup and sale of parts of its business.
But that doesn’t mean it can’t outperform in the years to come. Over the past year, it’s gained 29%, while its two-year return is 106%, so slowly it’s becoming a momentum stock, if not a growth stock.
The good news, as the adage says, is that share prices follow earnings. Since 2020, Fox has broadcast the Super Bowl three times: February 2020, 2023, and 2025.
The annual revenues in the off years (2021, 2022, and 2024) varied from a low of $12.91 billion in 2021 (June year-end) to $13.98 billion in 2024. Not much growth.
Meanwhile, despite the lack of revenue growth, its EBIT (earnings before interest, taxes, depreciation and amortization) stayed between $2.44 billion in 2024 and $2.74 billion in 2021. Yet, because of share repurchases, its earnings per share were higher in 2024 ($2.73) than in 2021 ($2.33), despite $300 million less in EBIT.
Perhaps the biggest eye-opener is the difference between June 2021 and June 2024 in their forward P/E ratios. In June 2021, it was 13.97x, compared to 8.92x in June 2024. Fast forward to March 2026. It was in between the two at 11.62x.
Free cash flow is one of my favorite financial metrics because it gives you a good idea of a business’s ability to cover its operating expenses and keep the lights on.
As of Q3 2026, its trailing 12-month free cash flow was $2.14 billion. Based on an EV of $30.53 billion, it has a free cash flow yield of 7.0%. I consider anything above 8% to be in value territory. Given valuations, that’s essentially in value territory right now.
As of June 30, 2021, its annual free cash flow was $2.16 billion. Based on an EV of $23.97 billion at the time, its free cash flow yield was 9.0%, putting it in value territory, 200 basis points above today's level.
The Bottom Line on FOXA Stock
In the first three quarters of fiscal 2026, Fox has repurchased $1.9 billion of its stock, 2.5 times higher than in the same three quarters a year ago. In the last three fiscal years, it has repurchased $4 billion of its stock at an average of $34.78, well below its current price.
The company clearly prefers share repurchases to dividends. They have been profitable for it, nearly doubling its return on investment. I’d have to look more closely at the share prices, highs, and lows in 2023, 2024, and 2025 to determine whether they bought well or just benefited from a rising tide.
While I personally wouldn’t buy the stock, if you’re not a dividend-focused investor, its profitability and stock buybacks should help keep its earnings per share moving higher.
And despite the gains over the past year, its valuation metrics are still very reasonable. In this market, it is a value buy.
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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- Fox Analysts Raise Their Forecasts After Upbeat Q3 Earnings
May 12, 2026 · benzinga.com
Fox Corp. (NASDAQ:FOX) (NASDAQ:FOXA) on Monday posted upbeat fiscal third-quarter 2026 results.
- 3 Value Stocks with Questionable Fundamentals
May 12, 2026
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor. The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. Keeping that in mind, here are three value stocks climbing an uphill battle and some other investments you should look into instead.
Flowers Foods (FLO)
Forward P/E Ratio: 10.3x
With Wonder Bread as its premier brand, Flowers Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Why Do We Think FLO Will Underperform?
Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy Estimated sales decline of 1.3% for the next 12 months implies a challenging demand environment Earnings per share fell by 21% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
Flowers Foods is trading at $8.64 per share, or 10.3x forward P/E. To fully understand why you should be careful with FLO, check out our full research report (it’s free).
FOX (FOXA)
Forward P/E Ratio: 12.4x
Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Should You Dump FOXA?
Annual sales growth of 5.5% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand Projected 4.6 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
At $62.70 per share, FOX trades at 12.4x forward P/E. Dive into our free research report to see why there are better opportunities than FOXA.
F.N.B. Corporation (FNB)
Forward P/B Ratio: 0.9x
Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE:FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.
Why Does FNB Give Us Pause?
Muted 5.2% annual revenue growth over the last two years shows its demand lagged behind its banking peers Net interest income trends were unexciting over the last five years as its 9.4% annual growth was below the typical banking firm Earnings growth underperformed the sector average over the last two years as its EPS grew by just 4.5% annually
Story Continues
F.N.B. Corporation’s stock price of $17.90 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including FNB in your portfolio, it’s free.
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- Fox Corp (FOX) Q3 2026 Earnings Call Highlights: Strong Revenue Growth Amid Advertising Challenges
May 12, 2026
This article first appeared on GuruFocus.
Revenue: $4 billion for the fiscal third quarter. Adjusted EBITDA: Growth of 11% to $954 million. Distribution Revenue: Increased by 3% over the prior year. Advertising Revenue: Declined 24% due to the absence of last year's Super Bowl broadcast. Net Income: $166 million or $0.38 per share. Adjusted Net Income: $570 million with adjusted EPS of $1.32, up 20% from the prior year. Cable Segment Revenue Growth: 6% with adjusted EBITDA growth of 1% to $884 million. Cable Advertising Revenue: Increased by 5% year-over-year. Television Segment Revenue: $2.2 billion for the quarter. Television Segment Advertising Revenue: Declined 30% due to the absence of the Super Bowl. Free Cash Flow: $1.77 billion for the quarter. Share Buyback Program: $1.95 billion repurchased fiscal year-to-date, totaling over $8.5 billion since 2019. Cash and Debt: Ended the quarter with $3.6 billion in cash and $6.6 billion in debt.
Warning! GuruFocus has detected 1 Warning Sign with FOX. Is FOX fairly valued? Test your thesis with our free DCF calculator.
Release Date: May 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Fox Corp (NASDAQ:FOX) reported $4 billion in revenue and an 11% growth in EBITDA, reflecting strong core top-line delivery from ongoing advertising trends and distribution revenue growth. FOX News achieved its highest third-quarter advertising revenue ever, driven by compelling and timely reporting during consequential news cycles. FOX Sports experienced significant viewership increases, with the World Baseball Classic ratings up over 150% compared to the 2023 tournament. Tubi's revenue grew by 23%, with a 19% increase in total view time, maintaining strong momentum from library content and original programming. FOX One showed promising early success with new subscriber additions and retention outperforming expectations, contributing positively to distribution revenue growth.
Negative Points
Advertising revenue declined due to the absence of last year's Super Bowl broadcast, impacting overall revenue figures. Net income attributable to Fox stockholders decreased to $166 million from $346 million in the prior year period. Television distribution revenue was down 1%, aligning with expectations for flat performance for the full year. Total expenses fell 14%, primarily due to differences in the NFL post-season schedule, indicating reliance on sports events for cost management. The company faces challenges in maintaining cable network distribution revenue growth amidst evolving media consumption trends.
Story Continues
Q & A Highlights
Q: Can you share more details about the additional NFL games Fox acquired and address concerns about NFL games moving to streaming services? A: Lachlan Murdoch, Executive Chair and CEO, explained that Fox acquired rights to two additional regular season NFL games. The first game will be a triple header on broadcast TV in week 10, and the second will be a Saturday game in week 15. Murdoch emphasized that there is no tension with the NFL, and Fox has a strong 30-year partnership with the league. While there is speculation about renegotiating deals, no substantive discussions have occurred. Fox aims to deepen its relationship with the NFL in a disciplined manner.
Q: How sustainable is the cable network distribution revenue growth, and what role does FOX One play in this? A: Lachlan Murdoch noted that Fox is in a strong position with cable distribution, seeing sub declines stabilize below 6.5%. FOX One has contributed positively, although its subscribers are not yet included in the sub-decline figures. Steven Tomsic, CFO, added that FOX One significantly contributed to subscriber trends and revenue growth. Fox anticipates continued growth in cable distribution revenue, supported by strong brand value and evolving ecosystem dynamics.
Q: Can you discuss advertising trends and the financial impact of the upcoming World Cup? A: Lachlan Murdoch highlighted strong advertising trends across sports, news, and entertainment, with a healthy upfront market expected. Political ad revenue is also anticipated to be strong. Regarding the World Cup, Murdoch expressed excitement about its potential to enhance FOX One and Tubi's brand and audience metrics. Steven Tomsic noted that the World Cup's financial impact will be spread across Q4 and Q1, with overall EBITDA accretive results expected.
Q: What are the expectations for FOX One's growth and its potential to offset traditional pay TV declines? A: Lachlan Murdoch expressed satisfaction with FOX One's performance, noting lower-than-expected churn and strong content engagement. Over half of FOX One's viewership is news-related, which supports subscriber retention. While it's early days, Murdoch is optimistic about FOX One's potential to offset traditional pay TV declines, especially as more sports content is added.
Q: How is Fox leveraging its investments in sports betting, particularly with FanDuel and Flutter? A: Lachlan Murdoch stated that Fox remains bullish on FanDuel and retains a 2.5% equity stake in Flutter and an 18.6% option in FanDuel. Fox has over four years to exercise this option and is currently undergoing a licensing process to facilitate it. Murdoch reiterated confidence in the FanDuel business's growth potential.
Q: How has FOX News' pricing evolved with its increased reach, and what are the expectations for viewership trends? A: Lachlan Murdoch reported strong ratings and share growth for FOX News, with 200 new advertising clients added in fiscal '26. This has driven CPMs up by over 45%, although there remains a gap compared to broadcast networks. Murdoch sees significant upside potential as FOX News continues to attract advertisers and narrow the pricing gap.
Q: What is Fox's approach to digital investments, particularly in Tubi and FOX One? A: Steven Tomsic explained that Fox has been thoughtful in deploying capital, with Tubi achieving breakeven or better results for three consecutive quarters. Fox's digital investments focus on Tubi and FOX One, with Tubi's investment moderating as it grows. Tomsic expects digital investments to remain within the $290 million range seen last year, with no surprises anticipated for fiscal '27.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- S&P 500, Nasdaq Reach New Peaks as Traders Track US-Iran Conflict
May 11, 2026
The S&P 500 and the Nasdaq Composite hit fresh highs on Monday as traders continued to track develop
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- A Look at Fox Corp (FOXA) After 7.6% Gain -- GF Value $50.84 vs Price $67.72
May 11, 2026 · gurufocus.com
On May 11, 2026, Fox Corp (FOXA) shares rose 7.6% today, currently priced at $67.72. This move comes as the stock has experienced a 52-week range of $50.03 to $
- Sector Update: Consumer Stocks Decline Late Afternoon
May 11, 2026
Consumer stocks fell late Monday afternoon with the State Street Consumer Staples Select Sector SPDR
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