News Corp. Earnings Preview: Analysts Expect Higher EPS, Revenue
News Corp. (NASDAQ: NWSA) announces its next round of earnings this Wednesday, November 2, 2011. Get prepared with Benzinga's ultimate preview for News' first quarter earnings.
Earnings and Revenue:
Analysts are predicting an EPS reading of 29 cents/share and revenues of $7.67 billion. News Corp.'s latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 27 cents/share on revenues of $7.43 billion. Can the company manage the estimated 7.4% rise in EPS and 3.2% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 | Q3 | Q2 | Q1 |
| EPS Estimate | $0.29 | $0.27 | $0.28 | $0.24 |
| EPS Actual | $0.35 | $0.26 | $0.29 | $0.27 |
Stock Performance:
At last check, shares of News Corp. were trading at $17.84. Since January 1st, shares have given investors a return of 23.8%. For a full 12 months, the return has risen by 23.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts is a Moderate Buy. The strength of this rating has declined slightly over the past three months.
Competitors:
Wondering how some of the other consumer discretionary companies are doing? Here are a few of News Corp.'s peers in that sector.
- CBS (NYSE: CBS): Moderate Buy with a $0.58 recent quarter EPS
- Walt Disney Company (NYSE: DIS): Hold with a $0.78 recent quarter EPS
- Gannett (NYSE: GCI): Hold with a $0.44 recent quarter EPS
- Journal Communications (NYSE: JRN): Moderate Buy with a $0.08 recent quarter EPS
The newspaper publishing company's industry has seen price/earnings growth of 0.4% during the current fiscal year.
Finally, a description of the company's main areas of operation: News Corp. is a global media company with operations in film, television, cable programming, satellite television, magazines, and book publishing.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming News Corp. earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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