With a market cap of $16.1 billion, News Corporation (NWS) operates within the media and information services industry, offering diverse content and services worldwide. With six primary segments, including Digital Real Estate, News Media, and Subscription Video Services, it delivers content across newspapers, TV, and digital platforms in the U.S., U.K., and Australia. The New York-based company is expected to release its fiscal Q1 earnings results on Thursday, Nov. 7.
News Corporation surged 34.8% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 41.4% gain and the Communication Services Select Sector SPDR ETF Fund's (XLC) 44.9% increase over the same time frame.
Shares of News Corporation rose 3.6% following its Q4 earnings release on Aug. 8. Q4 revenues grew by 6% to $2.6 billion, largely driven by gains in Digital Real Estate Services, Book Publishing, and Dow Jones segments. The company reported a significant turnaround in net income, reaching $71 million, compared to a net loss of $32 million in the previous year, reflecting improved profitability. Total Segment EBITDA hit a record high for since the company’s separation, increasing to $380 million.
In addition, REA Group reported substantial growth in its Australian residential market and rising revenue from digital audiobooks in Book Publishing, which outpaced e-books for the first time. Furthermore, a landmark multi-year partnership with OpenAI likely bolstered investor confidence in the company's forward-looking strategy.
The consensus view on News Corporation stock is bullish, with an analyst suggesting a "Strong Buy" rating. As of writing, NWS is trading below the average analyst price target of $39.
On the date of publication, Sohini Mondal 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.
