News Corporation Faces Mixed Performance Despite Positive Earnings Report
News Corporation (NWSA), based in New York, is a major player in creating and distributing news and entertainment globally. With a market cap of $16.6 billion, the company offers a variety of services including news, financial insights, book publishing, digital real estate, and subscription video content through well-known outlets such as The Wall Street Journal, Barron’s, and the New York Post.
Yearly Gains Lag Behind the Market
Over the past year, NWSA shares have fallen short of broader market performance. The stock has risen just 12.1%, while the S&P 500 Index ($SPX) has increased by about 20.7%. However, in 2025, NWSA’s stock is showing a modest gain of 6%, outpacing SPX’s year-to-date rise of 3.1%.
Struggles in a Changing Media Landscape
When analyzing more closely, NWSA’s challenges become clear when compared to the Communication Services Select Sector SPDR ETF Fund (XLC), which has surged nearly 30.4% in the last year. Additionally, the ETF has seen a gain of 6.6% year-to-date, far exceeding the returns from NWSA.
NWSA has struggled to maintain demand as consumers increasingly turn to online sources, which has disrupted the traditional media landscape.
Positive Earnings Surpass Expectations
On February 5, NWSA shares climbed slightly after the company’s Q2 earnings announcement. The adjusted earnings per share (EPS) of $0.33 exceeded Wall Street’s expectation of $0.31, while revenue reached $2.24 billion, surpassing the forecast of $2.17 billion.
Looking ahead, analysts predict a robust growth of 32.9% in NWSA’s EPS for the current fiscal year, which ends in June, reaching $0.93 on a diluted basis. Impressively, NWSA has either beaten or matched earnings estimates in each of the past four quarters.
An Encouraging Analyst Consensus
A total of nine analysts cover NWSA stock, with a consensus rating of “Strong Buy.” A month prior, this outlook was less optimistic, indicating a shift in sentiment. Currently, six analysts recommend a “Strong Buy.”
On February 6, Guggenheim reiterated its “Buy” rating for NWSA, raising the price target to $44, suggesting a potential upside of 50.8% from current levels.
The average price target among analysts is $37.86, indicating a 29.7% upside potential. The highest target at $43 implies an ambitious potential increase of 47.4%.
On the date of publication, Neha Panjwani 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 further details, please view the Barchart Disclosure Policy here.
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