News Corporation’s Stock Performance Shows Resilience Amid Market Changes
Company Overview and Current Market Standing
With a market cap of $16.3 billion, New York-based News Corporation (NWSA) is a prominent player in global media and information services. The company operates in various sectors, providing content and services in areas like digital real estate, subscription video, publishing, and financial data.
Comparison with Broader Market Trends
Over the past 52 weeks, shares of News Corporation have shown strong performance, rising 37.1% compared to a 30.4% gain in the S&P 500 Index ($SPX). However, in 2024, NWSA’s growth of 16.6% fell short of SPX’s year-to-date increase of 23.1%.
Sector-Specific Analysis
Focusing more closely, NWSA’s stock has slightly exceeded the performance of the Communication Services Select Sector SPDR ETF Fund’s (XLC) 36.4% rise over the last year. Yet, on a year-to-date basis, the stock has trailed behind XLC’s nearly 31% increase.
Recent Financial Results
Shares of News Corporation gained 1.2% following its Q1 2025 earnings announcement on Nov. 7. The results revealed better-than-expected earnings, with earnings per share (EPS) of $0.21 surpassing estimates. The company’s revenue also grew by 3.1% year-over-year to $2.6 billion, supported by strong performance in the Digital Real Estate Services, Book Publishing, and Dow Jones segments. Growth in digital subscriptions and continued strength in its REA Group and streaming services enhanced investor confidence.
Future Projections and Analyst Ratings
Looking ahead to the current fiscal year ending in June 2025, analysts project NWSA’s EPS to grow by 21.4% year-over-year to $0.85. The company’s history of exceeding earnings estimates is noteworthy; it has beaten consensus estimates in each of the last four quarters.
Among the six analysts monitoring the stock, the consensus rating is a “Strong Buy.”
Price Target Updates
On Nov. 12, Guggenheim increased its price target for NWSA to $40 while maintaining a “Buy” rating, revising its model based on fiscal Q1 earnings and updated forecasts for FY25 revenue and EBITDA at $10.4 billion and $1.7 billion, respectively.
The average price target of $37 represents a potential upside of 29.3% compared to NWSA’s current valuation. The highest price target of $41 suggests a possible increase of 48.3% from current prices.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
