
Twenty-First Century (FOXA) Stock Takes a Beating From Weak Quarterly Revenue
NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA) - Get Report shares are tumbling 2.69% to $30.44 on Wednesday after the New York-based media and entertainment company reported its first quarter fiscal 2016 earnings results.
Profits for the latest quarter came in a 38 cents a share, a penny higher than analysts' forecasts.
However, revenue dropped 6.3% year-over-year to $6.08 billion, missing estimates of $6.42 billion.
In the same period the year prior, the media company earned 39 cents a share on revenue of $6.44 billion.
Sales were hurt by poor performance of the superhero movie "The Fantastic Four," Reuters said. On top of this, the strong dollar put a dent in the company's income from overseas markets, given that the company gets a third of its sales abroad.
This is the company's first quarterly report under the new CEO James Murdoch, who replaced his father Rupert in the beginning of July.
Additionally, Executive Chairman Rupert Murdoch commented on these results saying, "As we look forward, we have an exciting film slate which includes this weekend's The Peanuts Movie, the holiday release of Joy, as well as the summer releases of the newest X-Men and Independence Day."
Separately, TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate TWENTY-FIRST CENTURY FOX INC (FOXA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: FOXA









