On Feb. 7, News Corp.
- The 2.8% decrease in outstanding shares turned an 18.4% increase in continuing operations into a 24% jump in EPS.
- Revenue and earnings growth were driven higher by substantial gains in filmed entertainment, cable network programming, and newspaper advertising and circulation.
- The company announced a share exchange agreement with Liberty Media which will result in News Corp.'s acquiring Liberty's 16.3% economic interest in the company. Chairman and CEO Rupert Murdoch stated that "... we believe [the transaction] unlocks tremendous value for our shareholders. It will be immediately accretive on both a free cash flow and earnings per share basis, and it allows us to monetize our stake in DIRECTV at an attractive valuation, tax free."
- More than 95% of Motley Fool CAPS users expect News Corp. to outperform the S&P 500.
(Figures in millions, except per-share data)
Income Statement Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Sales |
$7,844 |
$6,665 |
17.7% |
Net Profit* |
$822 |
$694 |
18.4% |
EPS |
$0.26 |
$0.21 |
23.8% |
Diluted Shares |
3,187 |
3,280 |
(2.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
32.0% |
32.9% |
(0.9) |
Operating Margin |
14.6% |
13.8% |
0.8 |
Net Margin |
10.5% |
10.4% |
0.1 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$5,438 |
$5,243 |
3.7% |
Accounts Rec. |
$6,339 |
$5,433 |
16.7% |
Inventory |
$2,241 |
$1,917 |
16.9% |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable* |
$4,480 |
$3,956 |
13.2% |
Long-Term Debt |
$11,431 |
$11,260 |
1.5% |
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2007 |
YTD 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$705 |
$461 |
52.9% |
Capital Expenditures* |
$900 |
$1,988 |
(54.7%) |
Free Cash Flow |
($195) |
($1,527) |
N/A |
Find out why Fools always follow the money.
Related Companies:
-
Time Warner
(NYSE:TWX) -
Walt Disney
(NYSE:DIS) -
McGraw-Hill
(NYSE:MHP)
Related Foolishness:
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