Needham Reiterates Hold Rating on 21st Century Fox (FOXA)
Needham & Company analyst Laura Martin maintains Hold rating on 21st Century Fox (NASDAQ: FOXA), citing strong second quarter profits but tougher comps for second half of 2017.
Martin notes, “Revenue was in line with our estimates at $7.7B. Filmed Entertainment segment OIBDA of $389mm was 31% above our estimate, and TV segment OIDBA of $379mm was 22% higher. FOXA suspended share repurchases because, if allowed to acquire the 61% of BSKY it doesn’t currently own, it will have over 4x debt/OIDBA and its highest priority is to get below 3x. FOXA will focus on building out its authenticated apps in FY17 to add large scale, longer engagement, dynamic ad sales, and incremental younger viewers. Superbowl ads sold for about $5mm for each 30-second spot, and it will collect about $500mm in the current quarter (FY3Q17) tied to SB advertising.”
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Shares of 21st Century Fox closed at $31.06 yesterday.