Fox Corporation Just Recorded A 64% EPS Beat: Here's What Analysts Are Forecasting Next

Fox Corporation (NASDAQ:FOXA) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of US$3.6b, some 5.7% above estimates, and statutory earnings per share (EPS) coming in at US$1.78, 64% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Fox

Following the latest results, Fox's 20 analysts are now forecasting revenues of US$15.5b in 2025. This would be a decent 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 3.4% to US$4.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$15.1b and earnings per share (EPS) of US$3.63 in 2025. So it seems there's been a definite increase in optimism about Fox's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Fox 7.0% to US$45.15on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fox analyst has a price target of US$62.00 per share, while the most pessimistic values it at US$32.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Fox's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fox is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fox's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Fox. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Fox analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Fox that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.