Valued at a market cap of $15.7 billion, News Corporation (NWS) is a media and information services company that creates and distributes authoritative and engaging content, and other products and services for consumers and businesses. The New York-based company is expected to announce its fiscal Q3 earnings for 2025 after the market closes on Thursday, May 8.
Prior to this event, analysts project this communication services company to report a profit of $0.22 per share, up 100% from $0.11 per share in the year-ago quarter. The company’s earnings of $0.33 per share in the previous quarter fell short of the consensus estimates by 2.9%.
For the full year, analysts expect NWS to report EPS of $1.03, up 47.1% from $0.70 in fiscal 2024. However, its EPS is expected to decline 5.8% year over year to $0.97 in fiscal 2026.
Shares of NWS have soared 25.2% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 9.4% rise, and the Communication Services Select Sector SPDR ETF’s (XLC) 21% uptick over the same time frame.
NWS released its Q2 earnings results on Feb. 5. The company’s adjusted EPS of $0.33 missed the consensus estimates by 2.9%, which led to a slight decline in its share price in the following trading session. However, despite the earnings miss, the company showed strong year-over-year growth. Its adjusted EPS rose by 22.2%, while revenue grew 4.8% from the prior-year quarter to $2.2 billion, driven by robust growth in its digital real estate services, book publishing, and Dow Jones segments. Additionally, its adjusted EBITDA improved 19.7% year-over-year, reaching $481 million. Overall, while the earnings shortfall weighed slightly on investor sentiment, the company's solid revenue and profitability growth highlighted its underlying business strength.
Wall Street analysts are highly optimistic about NWS’ stock, with a "Strong Buy" rating by the three analysts covering the stock. The mean price target for NWS is $38.67, which indicates a 23.8% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
