Investors Sell Shares of News Corp. and Groupon Following Earnings

News Corporation (NASDAQ:NWSA) reported net income above Wall Street’s expectations for the second quarter. Net income for the entertainment company rose to $1.06 billion (42 cents per share) vs. $642 million (24 cents per share) in the same quarter a year earlier. This marks a rise of 64.6% from the year earlier quarter. Revenue rose 2.4% to $8.97 billion from the year earlier quarter. News Corporation reported adjusted net income of 39 cents per share. By that measure, the company beat the mean estimate of 34 cents per share. Analysts were expecting revenue of $8.94 billion.

Chairman and Chief Executive Officer Rupert Murdoch said: “The significant growth we reported in the quarter in the Cable Network Programming, Television and Filmed Entertainment segments clearly validates our strategy to develop and distribute superior wide-ranging content. I am particularly pleased with the success of our business strategies in spite of the uncertain economic conditions that we continue to face. News Corporation’s commitment to delivering value to our stockholders is unwavering and we will continue to focus on generating superior shareholder returns, as evidenced by our strong year to date earnings and the successful completion of over half of our previously announced share repurchase program.”

Competitors to Watch: News Corporation (NASDAQ:NWS), The Walt Disney Company (NYSE:DIS), Time Warner Inc. (NYSE:TWX), The New York Times Company (NYSE:NYT), Gannett Co., Inc. (NYSE:GCI), CBS Corporation (NYSE:CBS), The E.W. Scripps Company (NYSE:SSP), Journal Communications, Inc. (NYSE:JRN), and Pearson PLC (NYSE:PSO).

Groupon Inc. (NASDAQ:GRPN) reported its results for the fourth quarter. Loss narrowed to $42.7 million (8 cents per share) from a loss of $378.6 million or $1.08 a share. Revenue rose more than twofold to $506.5 million. Groupon Inc. reported an adjusted net loss of 2 cents per share. By that measure, the company fell short of mean estimate of 3 cents per share. It beat the average revenue estimate of $475.1 million.

“Groupon had a strong fourth quarter and we finished 2011 having helped 250,000 local merchants across 47 countries grow their businesses while saving Groupon customers billions of dollars,” said Andrew Mason, CEO and Co-Founder of Groupon. “We will continue to invest in new services and tools that help our merchant partners be more successful and drive local commerce around the world.”

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com