News Corp. (Nasdaq: NWSA ) is expected to report Q3 earnings around May 8. 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 Corp's revenues will expand 8.5% and EPS will contract -2.7%.
The average estimate for revenue is $9.11 billion. On the bottom line, the average EPS estimate is $0.36.
Last quarter, News Corp. chalked up revenue of $9.43 billion. GAAP reported sales were 5.0% higher than the prior-year quarter's $8.98 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 $0.44. GAAP EPS of $1.01 for Q2 were 140% higher than the prior-year quarter's $0.42 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 37.7%, 10 basis points worse than the prior-year quarter. Operating margin was 16.8%, 10 basis points better than the prior-year quarter. Net margin was 25.3%, much better than the prior-year quarter.
The full year's average estimate for revenue is $35.41 billion. The average EPS estimate is $1.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 126 members out of 154 rating the stock outperform, and 28 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give News Corp. a green thumbs-up, and five 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 $27.81.
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