21st Century Fox 2Q earnings beat expectations

By Media & AdvertisingFOXBusiness

21st Century Fox, the parent company of FOX Business, posted quarterly earnings that narrowly beat expectations on Wednesday after a tumultuous week on Wall Street.

During its second fiscal quarter, the company reported 46 cents earnings per share, which matched the forecast by economists at Thomson Reuters. The company reported total quarterly revenues of $8.04 billion, edging out expectations of $7.94 billion, according to Thomson Reuters.

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The earnings come on the heels of a major deal between Fox (NASDAQ:FOXA) and Disney (NYSE:DIS), which announced in December that it would acquire certain assets of 21st Century Fox for approximately $52.4 billion in stock -- transaction valued at more than $66 billion.

Disney Chairman and CEO Robert Iger plans to extend his tenure through 2021.

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“I’m convinced that this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world,” Rupert Murdoch, executive chairman of 21st Century Fox said at the time.

The deal, which is expected to occur within 12 to 18 months, is still contingent upon whether the Justice Department says it violates antitrust laws or not. Some experts have warned that the mega-deal will be scrutinized closely, after the DOJ sued to block a similar merger between AT&T (NYSE:T) and Time Warner (NYSE:TWX).

Immediately prior to the acquisition, the remaining Fox assets -- FOX Business Network, Fox News Channel, FS1, FS2 and Big Ten Network -- will be folded into a newly listed company that will be spun off to its shareholders. No changes will take effect before the deal closes.

James and Lachlan Murdoch, company executives and the sons of Rupert Murdoch, wrote in an internal memo that they were working with senior leaders across 21st Century Fox to plan for the creation of the new “Fox”, and touted the economic growth of the media giant.

“It was another quarter of growth that moved our business forward,” the memo said. “We continue to be rewarded for the strength and relevance of our core video brands across sports, news and entertainment, and recognized for our bold storytelling which is dominating the awards season.”

On Tuesday, Disney reported better-than-expected earnings that topped Wall Street’s expectations, but missed slightly on revenue in its first fiscal quarter of 2018. The entertainment giant posted adjusted earnings per share of $1.89 and revenue of $15.35 billion.

This story has been updated.

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