Fox Corp Reports Strong Revenue Growth and Analyst Upgrades

Fox Corp (NASDAQ: FOXA) is receiving a favorable Buy rating from Goldman Sachs analyst Michael Ng.

On Monday, Fox announced its fiscal first-quarter 2025 revenues, which reached $3.56 billion. This marks an increase from $3.21 billion reported a year earlier and surpasses the analyst consensus estimate of $3.37 billion.

Ng has adjusted his price target for the company's stock, raising it to a range of $46 to $51.

Breaking down the segments, Cable Network Programming generated revenues of $1.6 billion, reflecting a notable 15% increase, while the Television segment had revenues of $1.95 billion, up 10%.

Additionally, Ng noted that Fox Corp significantly outperformed expectations in the first quarter of fiscal 2025, with EBITDA amounting to $1.05 billion, well above the anticipated consensus of $874 million. This positive outcome stemmed largely from higher-than-expected performance in both the Cable Network Programming segment, achieving $748 million in EBITDA, and the Television segment, which brought in $372 million.

The success of the Cable Network has been attributed to effective control of operating expenses and the strong ratings for Fox News Media. The Television segment benefited from surging political ad revenues, especially noticeable in local stations and on the streaming platform Tubi, which achieved a remarkable 19% growth year-over-year.

Ng has increased Fox's 12-month price target to $51 to reflect expectations for record political ad revenue in fiscal 2025, bolstered by Tubi's strong advertising performance.

He emphasized Tubi's effectiveness in attracting targeted advertising within the FAST (free ad-supported streaming) landscape, forecasting that the platform will gain from the anticipated rise in political ad spending.

Fox Corp has projected that Tubi will generate revenues exceeding $1 billion in fiscal 2025. This estimate aligns with broader market expectations, showcasing Tubi's potential for long-term growth as digital ad budgets increasingly shift to online platforms.

Price Action: As of the last update on Tuesday, FOXA stock has risen by 1.73%, reaching a value of $43.75.

Image: Shutterstock

Fox, Revenue, Growth