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.
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:
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