Global media and publishing company News Corp (NASDAQ: NWSA) will be announcing earnings results this Thursday after the bell. Here’s what investors should know.
News Corp beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $2.14 billion, up 2.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
Is News Corp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting News Corp’s revenue to grow 2.5% year on year to $2.29 billion, slowing from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. News Corp has missed Wall Street’s revenue estimates four times over the last two years.
Looking at News Corp’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Disney delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 0.8%, and Apple reported revenues up 15.7%, topping estimates by 4.1%. Disney traded down 7.9% following the results while Apple’s stock price was unchanged.
Read our full analysis of Disney’s results here and Apple’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. News Corp is down 3.2% during the same time and is heading into earnings with an average analyst price target of $35.73 (compared to the current share price of $25.01).
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