Fox Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Fox Corporation (NASDAQ:FOXA) had a good week, as its shares rose 4.0% to close at US$33.41 following the release of its third-quarter results. It looks like a credible result overall - although revenues of US$3.4b were what the analysts expected, Fox surprised by delivering a (statutory) profit of US$1.40 per share, an impressive 46% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Fox

Following the latest results, Fox's 21 analysts are now forecasting revenues of US$15.1b in 2025. This would be a meaningful 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.0% to US$3.60. In the lead-up to this report, the analysts had been modelling revenues of US$15.1b and earnings per share (EPS) of US$3.54 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$36.85, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Fox, with the most bullish analyst valuing it at US$62.00 and the most bearish at US$29.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Fox's growth to accelerate, with the forecast 6.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fox to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Fox analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Fox (1 doesn't sit too well with us!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.