FOX Corp Beats Expectations

Fox Corporation's quarterly results came in ahead of Wall Street expectations despite the unprecedented economic fallout from the coronavirus.

And looking ahead, Executive Chairman and CEO Lachlan Murdoch assured investors the media company is well-positioned to handle the economic pressures from the global pandemic.

"Fox is in a strong position to deal with the impact of this pandemic, our strength was clearly demonstrated in the quarter," Murdoch said Wednesday during the earnings conference call.

FOX Business reports results were driven by the "multi-pronged" strength of the company's brands as well as the blockbuster performance of Super Bowl LIV broadcast on FOX.

He also signaled the company is performing well in the current quarter's early days. "The strength of Fox has also been on display in the week since the end of the quarter as we navigate these unprecedented times to continue to provide our services to communities across the country" he noted.

Revenue in the fiscal quarter jumped 25 percent to $3.44 billion compared to $2.75 billion in the year prior. Quarterly net income attributable to Fox Corporation stockholders decreased to $78 million or  $0.13 per share compared to $529 million $0.85 per share. Excluding special items, earnings were $0.93 per share ahead of $0.71 per share analysts were expecting.

Murdoch also took a moment to acknowledge the sacrifices of those workers on the front lines during these "extraordinary times".

"We owe deep gratitude to the nurses, doctors, police, teachers, age care workers, volunteers and countless other frontline workers for their incredible and brave sacrifices," he said.

Lachlan Murdoch

The current quarter is pacing down more than 50% for the Fox O&O stations Murdoch told Wall Street analysts Wednesday there are signs of improvement, TVNewsCheck reports.

“The categories that you would expect being affected significantly worse by COVID-19 are pacing more than 50% below — so travel, entertainment, restaurants are all pacing worse than 50%. But that’s ameliorated by many categories that are down significantly less than that — professional services, insurance and some categories that frankly are up, like pharmaceuticals. So it’s a real mix,” Murdoch said in the company’s quarterly conference call following release of earnings results.

He noted that the local markets won’t recover at the same rate — it will be state-by-state based on how businesses reopen. “But we are beginning to see positive signs in the pacings going forward,” he said.

Murdoch also noted a slowdown in political spending, with the thinning of the Democratic Party presidential field and some states delaying their primaries. “However, traditionally the political campaigns significantly ramp-up spending in our first fiscal quarter [calendar fourth quarter], and we expect with election day still six months away that this category will intensify again as we approach November.”

Fox Corp. is the parent of FOX Business and Fox News.