The 10-second takeaway
For the quarter ended March 31 (Q3), News Corp. beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
News Corp. reported revenue of $8.40 billion. The 23 analysts polled by S&P Capital IQ expected revenue of $8.25 billion on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $8.26 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 $0.37. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.38 for Q3 were 58% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.9%, 240 basis points better than the prior-year quarter. Operating margin was 15.6%, 120 basis points better than the prior-year quarter. Net margin was 11.2%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.61 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $34.08 billion. The average EPS estimate is $1.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 112 members out of 137 rating the stock outperform, and 25 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give News Corp. a green thumbs-up, and six 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 $22.49.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.