Fox stock jumps on strong earnings, revenue beat

Fox Corp. shares rose on Thursday after the company reported fiscal third-quarter earnings and revenue that exceeded analyst expectations, signaling resilience in its core broadcasting and cable networks amid a softer advertising market.

The New York-based media conglomerate posted adjusted earnings of $1.21 per share, surpassing the $1.15 per share estimate compiled by Refinitiv. Revenue totaled $3.18 billion, above the $3.12 billion forecast, driven by growth in its cable network division and higher affiliate fees.

Fox’s cable networks, including Fox News and FS1, contributed to the revenue beat, offsetting declines in its broadcast segment. Advertising revenue fell 3% year-over-year, reflecting broader industry pressures, but political ad spending ahead of the U.S. election provided a partial offset.

The company’s streaming division, Tubi, also showed growth, with ad-supported revenue rising 18% from the prior year. Management highlighted Tubi’s expanding user base and monetization improvements as key drivers.

Fox’s stock was up 4.5% at midday, outpacing the S&P 500’s 1.2% gain. The shares have gained roughly 12% over the past month, outperforming peers in the media sector.

Analysts at Truist Securities reiterated a buy rating on Fox, citing the company’s strong balance sheet and diversified revenue streams. The firm raised its price target to $45 from $42, reflecting confidence in Fox’s ability to navigate ad market volatility.

Fox’s performance contrasts with other media companies, such as Warner Bros. Discovery and Paramount Global, which have faced steeper declines in linear TV advertising. The company’s focus on live sports and news, including the upcoming NFL season, has helped sustain engagement and revenue.

Investors will be watching Fox’s guidance for the fourth quarter, particularly regarding political ad spending and streaming growth. The company is scheduled to provide an update during its earnings call later in the day.