Fox shares gain for a third straight session on Wednesday, quarterly revenue falls short of Wall Street estimates

November 8, 2018 8:42 am

Twenty-First Century Fox’s quarterly revenue, reported on Wednesday, came in below Wall Street estimates, as no major movie hit was released at the end of the US summer.

Fox shares closed higher for a third consecutive trading session on NASDAQ on Wednesday. The stock went up 0.83% ($0.39) to $47.55, after touching an intraday high at $47.63, or a price level not seen since July 13th ($47.63).

Shares of Twenty-First Century Fox Inc have risen 37.71% so far in 2018 compared with a 12.61% gain for the benchmark index, Nasdaq 100 (NDX).

In 2017, Fox’s stock surged 23.15%, thus, it underperformed the Nasdaq 100, which registered a 31.52% return.

Fox’s total revenue went up to $7.18 billion during the first quarter ended on September 30th, from $7.00 billion in the year-ago period. In comparison, analysts on average had expected revenue of $7.23 billion.

Revenue from Twenty-First Century Fox’s filmed entertainment unit was reported to have shrunk 7.5% year-on-year to $1.82 billion. The latter compares with $1.95 billion, expected by market analysts. At the same time, revenue from the company’s cable unit grew 3.6% year-on-year to $4.35 billion during the past quarter, again falling short of the median analyst estimate of $4.48 billion.

Net income attributable to shareholders surged to $1.29 billion ($0.69 per share) during the quarter ended on September 30th, from $855 million ($0.46 per share) in the year-ago period.

Meanwhile, Fox’s earnings per share, excluding special items, were reported at $0.52 per share during the first fiscal quarter, which matched the median analyst estimate.

In June, media mogul Rupert Murdoch agreed to sell Fox’s entertainment assets to Walt Disney Company in a $71.3-billion deal. Once the sale is finalized, a new entity is to be carved out, which will encompass Fox News, Business, Sports and the Broadcasting Company. Fox said it expected the new entity to generate about $10 billion in annual revenue.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Twenty-First Century Fox Inc’s stock price, have a median target of $50.00, with a high estimate of $53.00 and a low estimate of $45.00. The median estimate represents a 5.15% upside compared to the closing price of $47.55 on November 7th.

The same media also reported that 13 out of 24 surveyed investment analysts had rated Twenty-First Century Fox Inc’s stock as “Hold”, while 10 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Twenty-First Century Fox Inc (FOXA) are presented as follows:

Central Pivot Point – $46.17
R1 – $47.43
R2 – $48.31
R3 – $49.57
R4 – $50.82

S1 – $45.29
S2 – $44.03
S3 – $43.15
S4 – $42.26

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