Here's What to Expect When 21st Century Fox (FOX) Posts Earnings Wendesday

NEW YORK (TheStreet) -- Shares of Shares of Twenty-First Century Fox Inc (FOX) are down 0.78% to $32.94 in afternoon trading Wednesday, ahead of the media giant's third quarter earnings release.

The company is expected to post results for its latest quarter ended in March, after the market closes today.

For the quarter, 21st Century Fox is expected to earn 39 cents per share, according to analysts polled by Thomson Reuters.

The company is expected to post revenue of $6.9 billion, down compared to the $7.35 billion it reported a year ago.

New York City-based Twenty-First Century Fox is a diversified global media and entertainment company that operates industry segments including cable network programming, television, filmed entertainment, and direct broadcast satellite television.

Separately, 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 (FOX) 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 increase in stock price during the past year, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 414.3% when compared to the same quarter one year prior, rising from $1,207.00 million to $6,207.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.97, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, FOX has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, TWENTY-FIRST CENTURY FOX INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: FOX Ratings Report

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