News Corporation’s Earnings Outlook: What to Expect This February
Ahead of its upcoming earnings report, News Corporation (NWSA) is preparing to announce its second-quarter results on Wednesday, Feb. 5. Founded in 2012 and based in New York City, this global leader in media and information services boasts a market cap of $15.6 billion. The company reaches audiences in over 100 countries with a broad range of trusted brands and innovative digital solutions.
Analysts forecast a profit rise for News Corporation, expecting the company to report earnings of $0.30 per share, marking a 15.4% increase from $0.26 during the same quarter last year. Over the past four quarters, News Corporation has consistently outperformed Wall Street’s earnings per share (EPS) estimates.
In its last quarter, News Corporation achieved adjusted earnings of $0.21 per share, exceeding the consensus estimate by 31.3%. This surge was fueled by robust growth in digital real estate and subscription revenue.
Looking ahead, projections for fiscal 2025 suggest an EPS of $0.86, which reflects a 22.9% increase from $0.70 in fiscal 2024. Furthermore, EPS is expected to grow by 31.4% year-over-year to reach $1.13 in fiscal 2026.
Over the past year, News Corporation’s shares have risen by 13.2%. However, this performance lags behind the S&P 500 Index’s 22% growth and the Communication Services Select Sector SPDR ETF Fund’s notable 29.9% increase.
On Nov. 7, following its Q1 earnings report, News Corporation’s shares experienced a slight uptick. The report surpassed expectations with revenues of $2.6 billion, reflecting a year-over-year growth of 3.1%. The total Segment EBITDA rose to $415 million, the highest for a first quarter since the company’s separation, up from $364 million a year prior.
The overall consensus among seven analysts is overwhelmingly positive, with each issuing a “Strong Buy” recommendation for NWSA stock. The average price target set by analysts sits at $37.33, indicating a potential upside of 36% from current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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