Fox Corporation: Don't Be Fooled By The Latest Earnings Windfall

Fox Corporation delivered a blowout quarter, driven by a 22% revenue jump and strong World Cup ad revenues, yet the stock fell. The earnings windfall reflected the World Cup record-breaking performance; future windfalls are unlikely as World Cup rights face fierce bidding and higher costs for renewal. Distribution revenue growth may be largely attributable to Fox One, but management's strategy limits future such growth; there is no indication in these earnings that cord-cutting is abating.