News Corporation Rises in Q1 Earnings as Analysts Maintain Optimism

New York-based News Corporation (NWS) is a prominent media and information services company with a market capitalization of $18.2 billion. Its operations span the United States, Australia, and the United Kingdom, providing a variety of services including news, sports programming, digital real estate, book publishing, digital education, and pay-TV distribution.

Strong Stock Performance Compared to Market

Over the past 52 weeks, shares of News Corporation have significantly outperformed the broader market. NWS has risen 40% during this period, while the S&P 500 Index ($SPX) has increased by 31.3%. Year-to-date, the company’s stock has climbed 24.9%, slightly trailing SPX’s 25.5% return.

Comparison with Communication Services Sector

Focusing further, NWS also surpassed the Communication Services Select Sector SPDR ETF Fund’s (XLC) gain of 37.2% over the last year. However, on a year-to-date basis, the stock has lagged behind XLC’s 34% climb.

Q1 Earnings Showcase Growth

On November 7, after releasing its fiscal 2025 Q1 earnings report, shares of NWS increased by 1.1%. The company reported annual revenue growth of 3.1%, reaching $2.58 billion. Adjusted earnings per share rose by 31.2% year-over-year to $0.21. Additionally, net income skyrocketed by 148.3% to $144 million, largely fueled by strong performance in the Digital Real Estate Services, Book Publishing, and Dow Jones segments.

Analyst Ratings and Price Targets

The general sentiment regarding News Corporation stock remains bullish, with a “Strong Buy” rating from the sole analyst providing a recommendation. On November 12, Guggenheim reiterated a “Buy” rating for NWS and adjusted its price target to $40, suggesting a potential upside of 24.5% from current levels. The average analyst price target of $39 indicates a potential upside of 21.4% as well.

On the date of publication, Neharika Jain 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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