FOXA - Embedded Expectations Analysis - 2020 12 28
Twenty-First Century Fox, Inc. (FOXA:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with an 8.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about their viewership, expenses, and revenueSpecifically, management may be exaggerating their positioning to benefit from political ad spend, and they might be concerned about the sustainability of viewership on AMERICA'S GAME OF THE WEEK, and the timing of exercising their FanDuel investment. In addition, they may lack confidence in their ability to sustain net income, effectively manage operating expenses, and maintain strong advertising momentum. Furthermore, they may be overstating the potential of their stations in NFC markets and the overlap between their news audience and NFL audience
Fox is a news, sports and entertainment company. The company has three segments: Cable Network Programming, which consists of the production and licensing of news and sports content distributed primarily through cable television systems, direct broadcast satellite operators and telecommunication companies and online multi-channel video programming distributors; Television, which consists of the acquisition, marketing and distribution of broadcast network programming nationally under the FOX brand and the operation of several broadcast television stations; and Other, Corporate and Eliminations, which consists of corporate overhead costs, intracompany eliminations and the FOX Studios lot.
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