News Corp Earnings Cheat Sheet: Profit Slides Again

S&P 500 (NYSE:SPY) component News Corporation (NASDAQ:NWSA) reported its results for the first quarter. News Corp. is a global media company with operations in film, television, cable programming, satellite television, magazines, and book publishing.

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News Earnings Cheat Sheet for the First Quarter

Results: Net income for the entertainment company fell to $738 million (28 cents per share) vs. $775 million (30 cents per share) a year earlier. This is a decline of 4.8% from the year earlier quarter.

Revenue: Rose 7.2% to $7.96 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NWSA reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 29 cents per share. It beat the average revenue estimate of $7.67 billion.

Quoting Management: Chairman and Chief Executive Officer Rupert Murdoch said: “The exceptional strength of our financial results during the first quarter across the majority of our segments is confirmation that News Corporation’s core operations are strong and that we are on course to achieve our strategic and financial objectives. While we continue to remain mindful of the persistent economic uncertainty in many parts of the globe, I am proud of News Corporation’s achievements over the past quarters. We have leveraged our strong assets and solid management team to successfully navigate these unpredictable times. Coupled with our long-term view, I have every confidence that we will build upon these results in the coming quarters and continue to provide consistent stockholder value.”

Key Stats:

The company has now seen net income fall in each of the last three quarters. In the fourth quarter of the last fiscal year, net income fell 21.9% from the year earlier, while the figure fell 23.8% in the third quarter of the last fiscal year.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 35 cents versus a mean estimate of net income of 29 cents per share.

The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 10.5% to $8.96 billion from the year earlier quarter.

Gross margins grew 61.1 percentage points to 99.9%. The growth appeared to be driven by falling costs, as the figure fell 99.9% from the year earlier while revenue rose 7.2%.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 35 cents per share to 34 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.37 per share, a rise from $1.33 ninety days ago.

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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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