Fox Corporation (FOXA) shares soared to a 52-week high of $41.18, reflecting a significant uptick in investor confidence as the media giant continues to navigate the evolving entertainment landscape. This latest peak represents a substantial gain over the past year, with Fox Corp's stock witnessing an impressive 26.83% increase in value. The climb to a 52-week high underscores the company's strong performance and strategic initiatives that have resonated well with investors, positioning Fox Corp as a resilient player in a competitive industry.
In other recent news, FOX Corp has been the subject of several analyst adjustments due to its strong fourth-quarter performance, exceeding expectations in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA). Evercore ISI and CFRA have increased their price targets for the company to $38, while Wells Fargo (NYSE:WFC) maintained its underweight rating with a steady price target of $29.00. The adjustments follow a surge in momentum attributed to better ratings at Fox News, a positive advertising environment, and growth acceleration for its streaming service Tubi.
FOX Corp reported a Q4 EPS of $0.68, falling short of the consensus estimate by $0.13. The company also reported a 5% increase in affiliate fees and a 2% increase in revenue for its cable-network programming division. On an adjusted basis, the company outperformed expectations by earning 90 cents per share, compared to the anticipated 81 cents per share.
In terms of recent developments, the company announced a joint venture with Disney and Warner Bros. Discovery (NASDAQ:WBD), aiming to offer major sports leagues and events to non-subscribed streaming viewers. Additionally, a legal dispute is ongoing between media mogul Rupert Murdoch and three of his children over the future leadership of his media empire, which includes FOX Corp.
InvestingPro Insights
Fox Corporation (FOXA) has demonstrated a robust financial performance with a market capitalization of $18.92 billion, indicating a stable presence in the market. The company's P/E ratio stands at an attractive 12.16, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 11.71, suggesting that the stock may be undervalued relative to its earnings. Moreover, the PEG ratio for the same period is 0.35, which could imply that the stock's price is reasonable relative to its earnings growth potential.
InvestingPro Tips highlight that Fox Corporation has a history of returning value to shareholders, with management aggressively buying back shares and consistently raising its dividend for 4 consecutive years, showcasing a commitment to shareholder returns. Additionally, the company's dividend yield as of the end of 2024 stands at 1.32%, with a dividend growth of 8.0% in the last twelve months.
Investors should note that while some analysts have revised their earnings expectations downwards for the upcoming period, the stock has experienced a strong return over the last three months, with a price total return of 22.02%. Furthermore, Fox Corporation's stock generally trades with low price volatility, which might appeal to investors seeking stability. For those interested in a deeper analysis, InvestingPro offers additional insights and tips on Fox Corporation, available at Investing.com/pro/FOXA.
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