News Corporation Prepares for Strong Q3 Earnings Report

Valued at approximately $14 billion, New York-based News Corporation (NWSA) operates as a global media and information services company. It creates and distributes content across various platforms, including newspapers, digital media, book publishing, and subscription video services.

Upcoming Earnings Preview

The media giant plans to report its third-quarter results after the markets close on Thursday, May 8. Analysts anticipate an adjusted EPS of $0.19, which represents a 72.7% increase from $0.11 reported in the same quarter last year. Notably, the company has met or exceeded Wall Street’s bottom-line expectations for the last four consecutive quarters.

Long-Term Financial Outlook

For the entire fiscal year 2025, NWSA is projected to achieve an adjusted EPS of $0.91, indicating a robust 30% rise from $0.70 reported in fiscal 2024. Looking ahead to fiscal 2026, earnings are expected to climb further, with a year-over-year increase of 18.7%, reaching $1.08 per share.

Stock Performance Analysis

NWSA Stock has gained 12.1% over the past 52 weeks. This performance surpasses the S&P 500 Index’s ($SPX) 9.4% gains, although it lags behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) remarkable 21% surge during the same time frame.

Recent Earnings and Market Response

After releasing its Q2 results on February 5, News Corp.’s Stock experienced a slight drop during the trading session. However, the release showed significant growth in revenue from its Digital Real Estate Services, Book Publishing, and Dow Jones segments. Overall, the company’s topline revenue increased by 4.8% year-over-year to over $2.2 billion, exceeding consensus estimates by 1.9%. The company also reported a notable rise in earnings; its adjusted EBITDA surged 19.5% year-over-year to $478 million, and adjusted EPS increased 22.2% to $0.33, aligning with analysts’ projections. Following the initial decline, NWSA Stock rebounded by 1.9% in subsequent trading.

Analyst Consensus and Future Prospects

The consensus outlook for NWSA remains strongly positive, with a “Strong Buy” rating from all nine analysts covering the Stock. The mean price target of $38 suggests a potential upside of 40.1% from its current levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data provided are solely for informational purposes. For additional details, please view the Barchart Disclosure Policy here.

The opinions expressed are those of the author and do not necessarily represent the views of Nasdaq, Inc.