Wall Street has had yet another busy day. On Wednesday, August 9, Twenty First Century Fox (NASDAQ:$FOXA) reported fourth quarter earnings that surpassed expectations and revenue that just fell short of expectations.
Let’s take a look at how the company did versus what Wall Street expected:
- Earnings Per Share: 36 cents versus 35 cents, according to Thomson Reuters
- Revenue: $6.75 billion versus $6.77 billion, according to Thomson Reuters
- Net income attributable to Fox shareholders: $476 million or 26 cents per share
In the fourth quarter report, we see that the mass media company’s earnings dropped to 36 cents per share from 45 cents per share in the 2016 quarter. Meanwhile, revenue grew to $6.75 billion from $6.6 billion in the same period in 2016.
What caused revenue growth in the fourth quarter? Twenty First Century Fox attributed it to higher cable network programming affiliate as well as advertising revenue, which it said was offset by both lower television ad revenue and lower filmed entertainment content revenue.
“The investment we have made in our video brands, and in programming that truly differentiates, is proving to be the right strategy,” said Rupert and Lachlan Murdoch. “It is driving the value of our brand portfolio across both established and emerging distribution platforms that reflect our deep commitment to creative excellence across all of our entertainment product business. In addition, the outstanding performance of our live news and sports programming drove advertising growth for the year and continues to set our business apart.”
Now that the fourth quarter earnings report is out, investors will turn their attention to whether Fox will receive government approval of its $14.5 billion bid, which was first made back in December, to purchase the almost 61% of UK-based pay-TV group Sky. The deal is currently under review by British regulators.
Featured Image: depositphotos/zhukovsky
