Advertisement
Canada markets close in 49 minutes
  • S&P/TSX

    22,205.61
    +98.53 (+0.45%)
     
  • S&P 500

    5,259.91
    +11.42 (+0.22%)
     
  • DOW

    39,822.32
    +62.24 (+0.16%)
     
  • CAD/USD

    0.7383
    +0.0010 (+0.14%)
     
  • CRUDE OIL

    83.05
    +1.70 (+2.09%)
     
  • Bitcoin CAD

    95,712.87
    +2,612.78 (+2.81%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,241.10
    +28.40 (+1.28%)
     
  • RUSSELL 2000

    2,123.26
    +8.91 (+0.42%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,400.89
    +1.37 (+0.01%)
     
  • VOLATILITY

    12.93
    +0.15 (+1.17%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6842
    +0.0037 (+0.54%)
     

21st Century Fox says it's expecting hardly any earnings growth this year, shares tank

The Martian Aidan Monaghan 20th Century Fox
The Martian Aidan Monaghan 20th Century Fox

(Aidan Monaghan/20th Century Fox)

Shares of 21st Century Fox fell by as much as 4% in pre-market trading on Tuesday after the company said the strong dollar will gobble up some of its profits this year.

During the earnings call on Monday, chief financial officer John Nallen said fiscal-year profits would increase slightly or be flat, but Wall Street analysts had been expecting profits to rise by nearly 5%, according to Bloomberg.

Nallen said the strong dollar, and weakness in its film business, would impact profits in a way that would make it hard to hit the forecast.

The strong dollar, which weakens the value of foreign earnings, is expected to reduce profits by about $350 million, the company said.

ADVERTISEMENT

In the earnings statement, the company said its quarterly revenues were boosted by higher incomes from cable network programming and TV segments, but dampened by lower home entertainment revenues.

The media conglomerate owned by Rupert Murdoch reported adjusted earnings per share of $0.44, in line with expectations. Revenues fell 0.7% to $7.38 billion, missing the forecast for $7.52 billion.

Cable TV revenues jumped 9.4% to nearly $4 billion, while cable advertising increased 3% compared to the same quarter in the prior year.

Here's a chart showing the drop in shares pre-market on Tuesday:

Screen Shot 2016 02 09 at 7.55.36 AM
Screen Shot 2016 02 09 at 7.55.36 AM

(Google)

NOW WATCH: Fox News' debate ratings were better than the last GOP debate — even without Donald Trump



More From Business Insider