News (NAS: NWSA) reported earnings on Aug. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q4), News missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
News logged revenue of $8.37 billion. The 23 analysts polled by S&P Capital IQ hoped for a top line of $8.75 billion on the same basis. GAAP reported sales were 6.6% lower than the prior-year quarter's $8.96 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.64. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS were -$0.64 for Q4 compared to $0.26 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.5%, 10 basis points worse than the prior-year quarter. Operating margin was 14.2%, 90 basis points worse than the prior-year quarter. Net margin was -18.6%, 2,620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.24 billion. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $35.37 billion. The average EPS estimate is $1.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 113 members out of 137 rating the stock outperform, and 24 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give News 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 is outperform, with an average price target of $24.22.
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The article News Goes Negative originally appeared on Fool.com.
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