Yahoo Finance Execution of Internal Goals: A Priority for 21st Century Fox
Hits, Hulu, and Politics Could Drive 21st Century Fox in 2016
Strategic priorities for 21st Century Fox
Media giant 21st Century Fox (FOXA) is expected to announce its fiscal 2Q16 results on February 8, 2016. According to consensus Wall Street analysts’ expectations, 21st Century Fox is expected to have an EPS (earnings per share) of $0.44 and revenues of $7.6 billion in fiscal 2Q16.
The company stated at the UBS (UBS) Global Media and Communications Conference, held in late 2015, that one of the company’s strategic priorities is the internal execution of its goals in 2016. Considering that 21st Century Fox has significant business in the international markets, the company expects significant foreign currency exchange headwinds in fiscal 2016.
The above chart shows the performance of the PowerShares DB US Dollar Bullish ETF (UUP). The chart follows the US dollar’s price movements over the last two years. As you can see, the dollar continued to rise in 2015, with occasional hiccups amid falling commodity prices, a slowing global economy, and the Fed’s first rate hike in almost a decade. These factors also impacted other technology companies, including IBM (IBM) and Microsoft (MSFT).
21st Century Fox expects to stay on track
Even after its foreign currency exchange fluctuations, 21st Century Fox still expects to be operationally on track in fiscal 2Q16. It includes the expansion of its FIC (Fox International Channels) and ensuring continued growth of its Fox Sports 1 and Fox Sports 2 cable networks. The company also expects its upcoming movies in the Filmed Entertainment segment to do good business in 2016.
In the next part of this series, we will look at 21st Century Fox’s business segments in greater detail. The company makes up 0.18% of the SPDR S&P 500 ETF (SPY). For an investor interested in getting an exposure to the Computers sector, SPY holds 3.9% of that sector.
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