Fox’s film studio stumbled through November and December as all of its major releases came up short at the box office, yet Sterne Agee analyst Vasily Karasyov does not believe there is any reason for concern, maintaining a buy rating on the company.
“20th Century Fox is the best-in-class producer of television shows and motion pictures with a long track record of delivering consistent results,” Karasyov wrote in a recent note. “For each quarter with an underperforming title, there is a quarter with a surprise hit.”
That did not happen in the final frame of 2013 (the second fiscal quarter of 2014), as “The Secret Life of Walter Mitty,” “Walking with Dinosaurs” and “The Book Thief” all struggled at the box office.
“Mitty,” the Ben Stiller-directed movie Fox hoped would be both an awards contender and hit at the box office, has grossed $116 million worldwide thus far – not enough for a movie that cost more than $100 million to produce and market. “Dinosaurs” struggled to lure kids away from “Frozen,” which retained a perch near the top of the box office throughout December.
Karasyov adjusted his estimates for the upcoming quarter since both movies “fell short of expectations,” but Fox’s track record more than makes up for it.
“We continue to expect a significant acceleration of earnings growth starting next fiscal year and reiterate our Buy rating.”
The post Analyst: Forget About Fox’s Movie Flubs — Buy Its Stock appeared first on TheWrap.
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