News Corp. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component News Corp. (NASDAQ:NWSA) will unveil its latest earnings on Wednesday, May 9, 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 estimate of analysts is for profit of 31 cents per share, a rise of 19.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 33 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 31 cents during the last month. For the year, analysts are projecting net income of $1.37 per share, a rise of 20.2% from last year.

Past Earnings Performance: Last quarter, the company reported profit of 39 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 0.2% in revenue from the year-earlier quarter to $8.24 billion.

Analyst Ratings: Analysts are high on the stock, with 13 analysts rating it as a buy, one rating it as a sell and seven rating it as a hold.

A Look Back: In the second quarter, profit rose 64.6% to $1.06 billion (42 cents a share) from $642 million (24 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.4% to $8.97 billion from $8.76 billion.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the third quarter of the last fiscal year, the fourth quarter of the last fiscal year and the first quarter before snapping that run with a profit increase in the second quarter.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 10.5% in the fourth quarter of the last fiscal year and 7.2% in the first quarter before climbing again in the second quarter.

Stock Price Performance: Between March 7, 2012 and May 3, 2012, the stock price had risen 36 cents (1.9%), from $19.35 to $19.71. 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% (+$1.88) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 4.6% (-80 cents) over that span.

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

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