Twenty-First Century Fox (FOXA) Stock Drops, 'Fantastic Four' Misses Expectations

NEW YORK (TheStreet) -- Twenty-First Century Fox  (FOXA) stock is declining 0.55% to $30.52 on Monday as its major comic book superhero movie "Fantastic Four" fell short of expectations at the box office in its opening weekend, The Wall Street Journal reports.

The film earned $26.2 million this past weekend, while analysts had forecast the film to bring in about $40 million, The Journal noted. 

"Fantastic Four" cost about $120 million to make, The Journal added.

On top of getting negative reviews from film critics, the movie ranked second, coming in after Viacom's (VIAB) Paramount's "Mission: Impossible--Rogue Nation," which grossed about $29.4 million in U.S. and Canada this weekend. "Mission Impossible" has been in the top spot for two weekends in a row.

Based in New York, Twenty-First Century Fox operates as a diversified media and entertainment company worldwide.

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."

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

  • 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.
  • Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Despite the fact that FOXA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.97 is high and demonstrates strong liquidity.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 91.3% when compared to the same quarter one year ago, falling from $999.00 million to $87.00 million.
  • Net operating cash flow has decreased to $983.00 million or 26.96% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: FOXA Ratings Report

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