21st Century Fox shares are sliding

Cable Network Programming quarterly segment OIBDA increased eight per cent to $1.25 billion, driven by a nine per cent revenue increase on strong affiliate revenue growth and higher advertising revenues partially offset by a 10 per cent increase in expenses. (Fox) reported nearly flat YoY (down 0.7 per cent) adjusted revenue of $7,375 million in the quarter ended 31 December, 2015 (Q2-2016, current quarter) as compared to the $7,424 million in the corresponding prior year quarter. The stock has a market cap of $48.42 billion and a P/E ratio of 6.46. It also beat on cable revenues, reporting $3.70 billion against estimates of $3.67 billion. Television was $1.7 billion, up from $1.6 billion, and filmed entertainment fell to $2.4 billion from $2.8 billion. 44 as compared to $0.53 a share it had reported in the same period a year ago, which was roughly in line with projections.

For the full year, 3 Wall Street analysts forecast this company would deliver earnings of $1.73 per share, with a high estimate of $1.77 and a low estimate of $1.69. However, revenues fell by more than expected, in part because of declines in the company’s filmed entertainment and home entertainment businesses.

Cable network division revenue increased 9.4% to $3.7 billion.

Twenty-First Century Fox, Inc.is a media and entertainment company.

In July, Mr. Murdoch officially stepped down as chief executive of 21st Century Fox Inc., handing the title to his son James. FBR & Co. dropped their price objective on Twenty-First Century Fox from $30.00 to $27.00 and set a “mkt perform” rating for the company in a research report on Tuesday. At present, the stock is down 2.28% to $23.98 during after-hours trade.

Twenty-First Century Fox (NASDAQ:FOXA) last announced its earnings results on Monday, February 8th. 21st Century Fox is hoping to cut costs and is launching a voluntary buyout program for USA employees.

Despite the success of The Martian, starring Matt Damon, 21st Century Fox has lowered its guidance for the financial year on the basis of unsatisfactory performance in its film business and foreign currency headwinds that might negatively impact earnings. The company had been forecasting growth of just under 5 per cent in earnings before interest, taxes, depreciation and amortization.