Fox Corp Impresses Investors, While Advanced Drainage Struggles

A positive outlook for Fox Corporation drives investor interest, as the media giant leads with strong EPS upgrades. In contrast, Advanced Drainage Systems faces earnings estimate declines amidst operating challenges.

Date: 15-01-2025

AI Rating: 7

Earnings Per Share (EPS): Fox Corporation projects a 19% increase in annual earnings for FY25, with EPS rising to $4.08 from $3.43 in 2024. EPS estimates for FY26 also show a slight rise despite overall expectations of a dip. This positive revision suggests increased profitability potential for Fox, which could boost its stock value.

Revenue Growth: Fox is anticipating a 12% jump in total sales for fiscal 2025, projected at $15.63 billion, compared to $13.98 billion last year. Although sales for FY26 are expected to dip slightly, the overall trend indicates strong revenue growth over the last five years, which is a favorable sign for investors.

Net Income: While specific figures for net income are not provided, the anticipated growth in EPS and revenue suggests a potentially positive outlook on net earnings as well.

Profit Margins: No specific information about profit margins is mentioned in the report.

Free Cash Flow (FCF): No details regarding free cash flow are provided in the report.

Return on Equity (ROE): No information regarding return on equity is included.

The outlook for Advanced Drainage Systems appears negative as it missed quarterly earnings expectations and lowered revenue guidance due to a decrease in demand and increasing costs. The stock’s EPS estimates are in decline, reflecting high risks for future profitability, which could negatively impact its stock price.

The divergent paths of Fox Corporation and Advanced Drainage Systems illustrate how varying fundamentals can significantly influence investor sentiment and stock price movement.

Stocks: FOXA WMS AAPL MSFT GOOGL