The 10-second takeaway
For the quarter ended Dec. 31 (Q2), News Corp. beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins expanded.
News Corp. chalked up revenue of $9.43 billion. The 19 analysts polled by S&P Capital IQ predicted revenue of $9.28 billion on the same basis. 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.
EPS came in at $0.44. The 21 earnings estimates compiled by S&P Capital IQ averaged $0.43 per share. 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 quarter, gross margin was 37.7%, 10 basis points worse than the prior-year quarter. Operating margin was 31.6%, 1,490 basis points better than the prior-year quarter. Net margin was 25.3%, 1,350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.76 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $35.13 billion. The average EPS estimate is $1.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 116 members out of 141 rating the stock outperform, and 25 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 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 $27.66.
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