Fox Corporation (NASDAQ:FOXA) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.3% to hit US$5.1b. Fox also reported a statutory profit of US$0.81, which was an impressive 30% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Fox

Taking into account the latest results, the current consensus from Fox's 20 analysts is for revenues of US$15.9b in 2025. This would reflect a satisfactory 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 7.2% to US$4.47 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$15.6b and earnings per share (EPS) of US$4.36 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.7% to US$54.43. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Fox analyst has a price target of US$64.00 per share, while the most pessimistic values it at US$39.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Fox's rate of growth is expected to accelerate meaningfully, with the forecast 9.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fox to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fox following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Fox. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Fox going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Fox that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.