September 11, 2018

FOXA – Market expectations are for declining Uniform ROA, and management has concerns about their financial performance and Television segment


  • Twenty-First Century Fox, Inc. (FOXA:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.5x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their Television segment and their ability to sustain strong financial performance
  • Specifically, management may lack confidence in their ability to sustain volume of top ranked shows, and to find the right downstream partners for certain products. Additionally, they may be concerned about the performance of their ICC World Cup and IPL tournament programming, and about their continued investments in the Marvel Strike Force mobile game. They may also be concerned about losses attributable to Thursday Night Football programming early in the cycle. Moreover, they may lack confidence in their ability to sustain strong P&L results, reported affiliate revenues, and EBITDA from their Television segment. Finally, they may be concerned about their ability to sustain high revenues in their domestic SVOD business, and to increase their revenues from retransmission
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.