Fox Corporation Class B (FOX) shares soared 6.29% in pre-market trading on Monday following the company's impressive fiscal third-quarter earnings report. The media giant significantly surpassed Wall Street expectations, with both revenue and adjusted earnings per share beating analyst estimates.
For the quarter ended March 31, Fox reported adjusted earnings of $1.10 per share, substantially higher than the $0.92 per share expected by analysts polled by FactSet. The company's revenue surged 27% to $4.37 billion, outpacing the $4.19 billion forecast. This substantial revenue growth was largely attributed to the broadcast of Super Bowl LIX and improved performance across its various segments.
The television segment saw a remarkable 40% jump in revenue, primarily driven by the Super Bowl broadcast and strong digital growth led by its Tubi streaming service. Meanwhile, the cable-network business, including Fox News, Fox Sports 1, and Fox Business, recorded a 12% gain due to higher news ratings, increased pricing, and growth in digital ad revenue. Despite the impressive top-line growth, Fox's profit was impacted by a 45% surge in operating costs, mainly due to higher sports programming rights amortization and production costs associated with the Super Bowl broadcast.
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