News Corp Earnings Sneak Peek

S&P 500 (NYSE:SPY) component News Corp (NASDAQ:NWSA) will unveil its latest earnings on Tuesday, November 6, 2012. News Corp. is a global media company with operations in film, television, cable programming, satellite television, magazines, and book publishing.

News Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 38 cents per share, a rise of 18.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 40 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 38 cents during the last month. For the year, analysts are projecting net income of $1.67 per share, a rise of 19.3% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported profit of 32 cents per share versus a mean estimate of net income of 32 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 6 cents.

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A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $1.55 billion (61 cents a share) from a profit of $683 million (26 cents) a year earlier, meeting analyst expectations. Revenue fell 6.6% to $8.37 billion from $8.96 billion.

Stock Price Performance: Between October 3, 2012 and October 31, 2012, the stock price dropped 83 cents (-3.4%), from $24.76 to $23.93. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 6, 2011, when shares rose for eight straight days, increasing 11.8% (+$1.89) over that span. It saw one of its worst periods between July 2, 2012 and July 12, 2012 when shares fell for eight straight days, dropping 5.6% (-$1.29) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.8% in revenue from the year-earlier quarter to $8.18 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 7.2% in the first quarter of the last fiscal year, 2.4% in the second quarter of the last fiscal year and 1.8%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.

Analyst Ratings: With 16 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.02 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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