Global media and publishing company News Corp (NASDAQ:NWSA) will be reporting results this Tuesday after market close. Here’s what you need to know.
News Corp beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $2.01 billion, flat year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is News Corp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting News Corp’s revenue to be flat year on year at $2.09 billion, improving from the 14% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. News Corp has missed Wall Street’s revenue estimates four times over the last two years.
Looking at News Corp’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Scholastic delivered year-on-year revenue growth of 7%, beating analysts’ expectations by 2.8%, and Hasbro reported a revenue decline of 1.5%, topping estimates by 11.2%. Scholastic traded up 23.9% following the results while Hasbro was down 3.3%.
Read our full analysis of Scholastic’s results here and Hasbro’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. News Corp’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $36.28 (compared to the current share price of $29.10).
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