Giant Media stock to watch: Fox Corp Class A (NASDAQ: FOXA)

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Fox Corp Class A (NASDAQ: FOXA) stock rose over 3.2% in the pre-market session of Feb 6th, 2020 (as of 7:47 am GMT-5 ; Source: Google finance)    after the company on the strength of the flagship Fox News Channel and higher rental income at its studios in Los Angeles. Fox after Rupert Murdoch agreed to sell most of 21st Century Fox to Walt Disney for $71 billion, had become a stand-alone company that is mostly focused on news and sports has reported the net income of $314 million for the second quarter, compared to $24 million in the year-ago period. Further, the income in the quarter was boosted by changes in the fair values of its investments in Roku, in which Fox holds a 5 percent stake, and The Stars Group, which were offset by higher operating costs and expenses after the Disney sale. But higher costs for Fox Sports’ NFL rights, the “Smackdown” launch last October and the absence of UFC bouts took a toll on Fox’s results for its fiscal second quarter.

Meanwhile, the company expects a big ad revenue from the coverage of the upcoming U.S. presidential election campaigns, both for Fox News and its local TV stations. The company predicts a new record for political ad revenue at Fox in 2020. As per the company, the Fox broadcast network had already received ad buys from both the Republican and Democratic parties. And President Donald Trump’s re-election campaign had yet to purchase significant ad space on local TV stations, while presidential candidate Michael Bloomberg had begun to buy commercial airtime on a week-to-week basis.

FOXA in the second quarter of FY 20 has reported the adjusted earnings per share of 10 cents, beating the analysts’ estimates for the adjusted loss per share of 4 cents. The company had reported the adjusted revenue growth of 5 percent to $3.78 billion in the second quarter of FY 20 compared to a year-earlier $3.58 billion.

Moreover, Fox’s broadcast TV segment has delivered a loss of $214 million, compared to a loss of $14 million in the prior-year quarter. Affiliate revenues grew by $72 million to $479 million. Advertising revenue rose up by 2% despite tough year-over-year comparisons to the election-year activity in the comparable period in 2018. Cable networks posted a modest 2% gain in revenue to $1.47 billion. Advertising revenues fell 5% due to “the impact of higher preemptions associated with breaking news coverage” and the loss of UFC from Fox Sports 1.

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