On Nov. 8, News Corp. (NYSE:NWS) released first-quarter earnings for the period ended Sept. 30.

  • Total sales increased 4.1% to $5.9 billion. Cable Programming, Direct Broadcast Satellite Television, and the ubiquitous "Other" all saw double-digit sales increases.
  • Operating income for the quarter was down and net income included gains on the sale of shares of Sky Brasil and Phoenix. Last year's quarter included a charge for a change in accounting.
  • 131 out of 136 investors think News Corp. will outperform the market. What do you think? Bring it to CAPS and let the community know.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$5,914

$5,682

4.1%

Net Profit

$843

($433)

N/A

EPS

$0.27

($0.13)

N/A

Diluted Shares

3,178

3,318

(4.2%)



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

36.6%

36%

0.6

Operating Margin

14.4%

16%

(1.6)

Net Margin

14.3%

(7.6%)

21.9

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$6,292

$6,450

(2.4%)

Accounts Rec.

$5,269

$4,697

12.2%

Inventory

$1,903

$1,742

9.2%



Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$4,385

$4,735

(7.4%)

Long-Term Debt

$11,394

$10,100

12.8%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$716

$497

44.1%

Capital Expenditures

$282

$199

41.7%

Free Cash Flow

$434

$298

45.6%



Find out why Fools always follow the money.

Related Companies:

  • Time Warner (NYSE:TWX)
  • CBS (NYSE:CBS)
  • Walt Disney (NYSE:DIS)

Related Foolishness:

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