Fox Corporation Set to Soar with Historic Super Bowl LIX Viewership
The excitement around Super Bowl LIX could lead to record-breaking viewership, putting Fox Corporation FOXA in a prime position for profit.
High Stakes Rematch: Chiefs vs. Eagles
Fox will showcase the Kansas City Chiefs aiming for an unprecedented “three-peat” against the Philadelphia Eagles, a rematch from their 2023 showdown. Fox’s previous Super Bowl in 2023 generated $600 million in sales and ranked as the third most-watched game, with the Chiefs’ victory attracting over 120 million viewers last year.
Momentum is building for this rematch, as Fox sold out all advertising slots months in advance, with brands paying as much as $7 million for a 30-second advertisement.
Image Source: Sporting News
Strong Financial Performance in Q2
Fox recently reported impressive fiscal second-quarter results, achieving an EBITDA record of $781 million—more than double from last year. Revenue surged by 20% to $5.07 billion, greatly surpassing estimates of $4.88 billion.
The adjusted net income rose to $442 million, or $0.96 per share, nearly tripling from the previous quarter and exceeding the Zacks EPS consensus of $0.65 by 47%. Fox has consistently outperformed earnings expectations for the last 10 quarters, holding an average surprise of 24.2% over its last four reports.
Image Source: Zacks Investment Research
Optimistic Outlook for Fox
Keith Murdoch, CEO of Fox, highlighted that the company is “firing on all cylinders.” The strong political ad revenue following the recent presidential election, alongside increased viewership across sports, has bolstered their financial health. Fox also anticipates continued revenue growth this year, thanks to solid advertising and affiliate fee performance.
Zacks estimates indicate that Fox’s total sales may increase by 12% in fiscal 2025 to $15.65 billion from last year’s $13.98 billion. Furthermore, annual earnings per share (EPS) are projected to rise by 24%, reaching $4.26 compared to $3.43 in 2024.
Fox plans to launch a new subscription streaming service focusing on sports and news by the end of 2025. This initiative aims to attract viewers beyond traditional cable and compete effectively with rivals like Disney’s DIS ESPN+ and Paramount Global PARA.
Valuation Insights for Investors
Fox’s impressive coverage continues to attract sports fans, while its stock valuation remains appealing. Although FOXA shares have increased by over 80% in the past year, they trade at a reasonable forward earnings multiple of 12.7X and below twice the sales level.
Image Source: Zacks Investment Research
Final Thoughts
While numerous companies will benefit from Super Bowl activities, Fox is poised to be a key winner, aside from the Chiefs or Eagles. The stock currently holds a Zacks Rank #1 (Strong Buy) as anticipation builds for one of the most awaited Super Bowls in NFL history.
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Fox Corporation (FOXA): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
