NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA) shares are falling 1.3% to $38.50 in trading on Tuesday following the conclusion of the last box office opening weekend in a disappointing year for theater revenues.
As of December 29, 2014, ticket sales across the industry declined 5.2% from last year to $10.22 billion, the lowest revenue the movie industry has generated at theaters since 2011 when it reported $10.19 billion in revenue, said industry research firm Renmark Corp.
The firm expects 2015 to be a slightly better year for movies with analysts at Renmark expecting the industry to generate over $11 billion in revenue.
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Twenty-First Century Fox's film division generated $1.738 billion in revenue in 2014 with an industry leading market share of 17.3%, according to ticket tracking website Box Office Mojo. The diversified media company generated a total of $31.86 billion in revenue in 2013.
TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWENTY-FIRST CENTURY FOX INC (FOXA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FOXA's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 11.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- Net operating cash flow has increased to $440.00 million or 39.24% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.70%.
- TWENTY-FIRST CENTURY FOX INC has improved earnings per share by 45.5% in the most recent quarter compared to 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 reported lower earnings of $1.66 versus $2.91 in the prior year. This year, the market expects an improvement in earnings ($3.35 versus $1.66).
- You can view the full analysis from the report here: FOXA Ratings Report