Needham & Company analyst, Laura Martin, reiterated her Hold rating on shares of 21st Century Fox (NASDAQ: FOXA) after FOXA reported 4Q16 revenue of $6.6B (up 7% y/y but 2% below estimates). Segment OIBDA of $1.45B (down 6% y/y, 1% below estimates), Adjusted EPS of $0.45, included a $0.07/share tax benefit (up 15% y/y, 24% above estimates).

Positives: 1) Dividend raised by 20% to $0.36/share/year plus $3B added to repurchase authorization

2) 27% TV Segment OIBDA growth

3) Hulu’s virtual MVPD strategy.

Negatives: 1) Leverage ratio near the high end of FOXA’s target of 3.0x suggests slower share repurchases and a dissipating EPS growth lever

2) Film segment OIBDA down 39% y/y and total OIBDA down $93mm (-6%) y/y, half was negative FX

3) Higher costs tied to US elections FY1H17

4) FOX’s exposure to slowing GDP in Europe tied to Brexit.

The analyst does not have an active price target on the company.

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Shares of 21st Century Fox closed at $27.04 yesterday.