Fox Corporation (NASDAQ:FOXA) shares rose around 8% since the company’s reported Q4 results last week, with revenue coming in at $3.03 billion, up 5% year-over-year. Adjusted EPS was $0.74, compared to $0.65 in the prior-year quarter. Adjusted EBITDA grew 7% year-over-year to $770 million, driven by higher contributions at the Television segment.
According to the analysts at RBC Capital, the company’s focus on prioritizing its marquee live news and sports programming in the linear ecosystem with a relatively concentrated portfolio of networks has stood in contrast to its peers that are in the midst of a highly disruptive business model shift towards streaming.
Despite concerns that the company will be left behind given its reliance on the legacy Pay TV ecosystem, the analysts noted that the Q4 results and the momentum heading into a banner 2023 suggests the company is very well positioned to continue delivering peer-leading affiliate and advertising revenue growth while its balance sheet and robust free cash flow profile offer optionality for any future strategic shifts.