NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA - Get Report) rose Monday after the company revealed it had held several discussions about combining the Sky-branded European satellite entities in Britain, Germany and Italy but had yet to reach an agreement to do so.
"Over the years we've had numerous internal discussions regarding the organizational and ownership structure of the European Sky-branded satellite platforms," the company said in a statement. "From time to time these conversations have included BSkyB, however no agreement between the parties has ever been reached."
British Sky Broadcasting also confirmed weekend reports on Monday when it said it had engaged in preliminary talks with Fox to acquire its pay-TV assets in Germany and Italy, Sky Deutschland and Sky Italia, respectively.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 14.7%. Since the same quarter one year prior, revenues rose by 11.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Media industry and the overall market, TWENTY-FIRST CENTURY FOX INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TWENTY-FIRST CENTURY FOX INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TWENTY-FIRST CENTURY FOX INC increased its bottom line by earning $2.91 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($2.99 versus $2.91).
- You can view the full analysis from the report here: FOXA Ratings Report