News (Nasdaq: NWSA ) is expected to report Q2 earnings on Feb. 6. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict News's revenues will increase 3.3% and EPS will grow 10.3%.
The average estimate for revenue is $9.27 billion. On the bottom line, the average EPS estimate is $0.43.
Last quarter, News reported revenue of $8.14 billion. GAAP reported sales were 2.2% higher than the prior-year quarter's $7.96 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.43. GAAP EPS of $0.94 for Q1 were 236% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 40.4%, 10 basis points better than the prior-year quarter. Operating margin was 16.9%, 50 basis points worse than the prior-year quarter. Net margin was 27.4%, 1,810 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $35.13 billion. The average EPS estimate is $1.71.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on News is outperform, with an average price target of $25.91.
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