21st Century Fox Inc. shares dropped 2.5% in premarket trade, following the media company's 2016 first-quarter earnings report. Fox said it had net income of $678 million in the quarter, or 34 cents per share, down from $1.04 billion, or 48 cents per share, in the same period a year ago. The company's adjusted per-share earnings was 38 cents, in line with the FactSet consensus. Revenue for the quarter fell 6% to $6.08 billion, compared with $6.48 billion in the prior year period. Analysts tracked by FactSet were expecting $6.39 billion in revenue. Fox's Executive Chairman Rupert Murdoch praised the domestic and international performance of the company's cable networks business, which saw double-digit growth thanks to increases in affiliate fees, higher ad revenue and lower expenses. Poor performance in the film segment, coupled with tough comparisons was a drag on the quarter. However, Murdoch said the company is pleased with the revenue draw of "The Martian," and is positive on future releases, including "The Peanuts Movie," "Joy," and the next "X-Men" film. Fox shares are down 18.5% in the year to date, underperforming the S&P 500 index, which is up more than 2% in the year.
Copyright © 2015 MarketWatch, Inc.