Why Is Fox (FOXA) Down 0.9% Since Last Earnings Report?

Fox (FOXA) shares have underperformed the S&P 500, declining 0.9% since its last earnings report, with consensus estimates trending downward by 10.02%. Despite a Zacks Rank #2 (Buy) rating and a strong VGM score of A, the magnitude of negative estimate revisions suggests a potential downward shift in performance. In comparison, industry peer Sirius XM (SIRI) gained 4.7% over the past month, reporting a 4.4% year-over-year revenue decrease and EPS of $0.59 in its most recent quarter.

Analysis

Fox Corporation (FOXA) has demonstrated recent market underperformance, with its shares declining 0.9% since its last earnings report, lagging the S&P 500. This underperformance is coupled with a significant negative trend in analyst sentiment, as evidenced by a 10.02% downward revision in the consensus estimate over the past month. Despite these headwinds, Fox maintains a strong overall VGM Score of A, highlighted by an A for Value and a B for Growth, although its Momentum Score is a C. Contradicting the negative estimate revisions, Fox holds a Zacks Rank #2 (Buy), suggesting an expectation of above-average returns in the near term. In contrast, industry peer Sirius XM (SIRI) experienced a 4.7% share price increase over the same period, despite reporting a 4.4% year-over-year revenue decrease to $2.07 billion and a lower EPS of $0.59 compared to $0.70 in the prior year for its quarter ended March 2025. Sirius XM's consensus estimates have remained unchanged, leading to a Zacks Rank #3 (Hold) and a VGM Score of B.

Key Decisions for Investors

• Investors should carefully weigh Fox's attractive Zacks Rank #2 (Buy) and strong Value score against the notable 10.02% downward revision in consensus estimates and recent share price underperformance.
• Monitor upcoming earnings releases and subsequent analyst estimate revisions for Fox to ascertain whether the current negative sentiment trend will reverse or if the stock is indeed poised for a breakout as the 'Buy' rating suggests.
• Consider the divergence in performance and outlook within the Broadcast Radio and Television industry, as exemplified by Fox's situation versus Sirius XM's recent gains despite weaker reported fundamentals, when making allocation decisions.