Twenty-First Century Fox Inc (FOXA) Stock Falls 6.6% After Revenue Miss

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Twenty-First Century Fox Inc (NASDAQ:FOXA) reported their quarterly earnings after the market closed on Monday, and investors are a bit bearish of the stock this morning. Earnings per share for the quarter came in at $0.44 on $7.38 billion in revenue, meeting analysts’ expectations on EPS but missing significantly on revenue. Wall Street had expected to see revenue of $7.51 billion, $140 million higher than what was actually reported.

Year-over-year, revenue also fell by about 1 percent. Also CFO John Nallen said that their fiscal-year profits would only increase slightly or perhaps remain unchanged for the year. This is discouraging to investors and Wall Street, as analysts had expected to see a rise in profits by approximately 5 percent.

“We are confident that the business is really on track to support our long-term objectives,” James Murdoch, chief executive of 21st Century Fox, said on a call with analysts. “However, two main factors–the continued currency movement against us and disappointing commercial results in the film business–are simply too significant for us to offset over the next six months to hit our near-term target.”

The stock closed at $24.59 during the last trading session. It is down 24.50% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 15.03%.

From a total of 14 analysts covering Twenty-First Century Fox Inc (NASDAQ:FOXA) stock, 11 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 79% of the ratings are positive. The highest target price is $38 while the lowest target price is $29. The mean of all analyst targets is $33.40 which is 35.83% above today’s ($24.59) stock price. Twenty-First Century Fox Inc was the topic of 25 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Telsey Advisory Group initiated shares on February 5 with a “Outperform” rating. Rosenblatt upgraded shares to a”Sell” rating and a $30 target share price in their report from an August 8. Credit Suisse maintained FOXA stock in a recent report from January 6 with a “Outperform” rating. Finally, Pacific Crest initiated the stock with a “Overweight” rating in a report they issued on an October 8.

Twenty-First Century Fox, Inc. is a media and entertainment company. The company has a market cap of $46.54 billion. The Firm operates through divisions: Cable Network Programming, Television, Filmed Entertainment, and Other, Corporate and Eliminations. It has 6.55 P/E ratio. The Firm produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies and online video distributors in the United States and internationally.

#focuskw=’Twenty-First Century Fox Inc (NASDAQ:FOXA)’##metadesc=’Twenty-First Century Fox Inc (NASDAQ:FOXA) reported their quarterly earnings after the market closed on Monday, and investors are a bit bearish of the stock this morning. Earnings per share for the quarter came in at $0.44 on $7.38 billion in revenue, meeting analysts’ expectations on EPS but missing significantly on revenue. Wall Street had expected to see revenue of $7.51 billion, $140 million higher than what was actually reported.

Year-over-year, revenue also fell by about 1 percent. Also CFO John Nallen said that their fiscal-year profits would only increase slightly or perhaps remain unchanged for the year. This is discouraging to investors and Wall Street, as analysts had expected to see a rise in profits by approximately 5 percent.

“We are confident that the business is really on track to support our long-term objectives,” James Murdoch, chief executive of 21st Century Fox, said on a call with analysts. “However, two main factors–the continued currency movement against us and disappointing commercial results in the film business–are simply too significant for us to offset over the next six months to hit our near-term target.”

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