Will Twenty-First Century Fox (FOXA) Stock Drop as Nomura Trims Earnings Estimates?
NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA) - Get Report stock is down 0.22% to $26.68 in early-morning trading after Nomura dropped its estimates for the company's fourth quarter 2016 earnings to 38 cents from 40 cents this morning.
The firm also adjusted its earnings estimates for fiscal years 2016 and 2017, to $1.66 and $2.10 respectively, down from $1.68 and $2.15.
Nomura said that TV advertising demand was stable this quarter and that pay-TV subscriber trends were "resilient."
However, the firm added that it expects higher expenses to weigh down the company's cable earnings this quarter.
For 2017, Nomura anticipates softer results in the company's film sector alongside "currency headwinds." Twenty-First Century Fox is also expected to continue investing in its Hulu programs.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: FOXA
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.