News Corp. Beats Up on Analysts Yet Again
News Corp. (NAS: NWSA) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), News Corp. met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased significantly.
Margins improved across the board.
News booked revenue of $8.98 billion. The 20 analysts polled by S&P Capital IQ expected sales of $8.95 billion. GAAP sales were 2.4% higher than the prior-year quarter's $8.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.34 per share on the same basis. GAAP EPS of $0.42 for Q2 were 75% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.8%, 180 basis points better than the prior-year quarter. Operating margin was 16.7%, 200 basis points better than the prior-year quarter. Net margin was 11.8%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.35 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $34.22 billion. The average EPS estimate is $1.38.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 109 members out of 135 rating the stock outperform, and 26 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give News Corp. a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on News Corp. is outperform, with an average price target of $20.62.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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