Valued at a market cap of $29.3 billion, Fox Corporation (FOXA) is a news, sports, and entertainment company based in New York.
This entertainment company has outpaced the broader market over the past 52 weeks. Shares of FOXA have rallied 20.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.2%. However, on a YTD basis, the stock is down 9.8%, lagging behind SPX’s marginal drop.
Zooming in further, FOXA has outperformed the State Street Communication Services Select Sector SPDR ETF’s (XLC) 13.4% rise over the past 52 weeks. However, it has trailed XLC’s 1.3% YTD decline.
On Feb. 4, shares of FOXA plunged 3.6% after its Q2 earnings release, despite delivering stronger-than-expected results. Primarily due to robust growth in its distribution revenues, the company’s total revenue grew 2% year-over-year to $5.2 billion, beating analyst expectations by 2.4%. However, its adjusted EBITDA declined 11.4% from the same period last year to $692 million as the revenue increase was more than offset by higher expenses. Additionally, its adjusted EPS of $0.82 fell 14.6% from the prior-year quarter, but handily topped analyst estimates of $0.47.
For fiscal 2026, ending in June, analysts expect FOXA’s EPS to decline 5.9% year over year to $4.50. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on eight “Strong Buy,” one "Moderate Buy,” and 11 "Hold” ratings.
The configuration is less bullish than a month ago, with nine analysts suggesting a “Strong Buy” rating.
On Feb. 5, Evercore Inc. (EVR) analyst Kutgun Maral maintained a “Hold” rating on FOXA and set a price target of $70, indicating a 6.2% potential upside from the current levels.
The mean price target of $71.65 represents an 8.7% premium from FOXA’s current price levels, while the Street-high price target of $97 suggests a 47.1% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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