Free Annual Reports
News First Quarter Earnings Preview
Tickers in this Article »
NWSA
When News Corp. (Nasdaq:NWSA) releases its first quarter earnings on Tuesday, November 6, 2012, it is expected to report earnings that are up 18.8% from a year ago. The consensus estimate is 38 cents per share, up from earnings of 32 cents per share a year ago.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: While down from 40 cents three months ago, the consensus estimate has remained unchanged over the past 30 days. For the fiscal year, analysts are projecting earnings of $1.67 per share.
News Corp. is expected to beat last year's reported revenue of $7.96 billion and come in at $8.18 billion for the quarter. News Corp. is expected to report revenue of $34.97 billion for the fiscal year.
Company Performance: Revenue fell year-over-year in the fourth quarter of the last fiscal year to end a three-quarter growth streak. After rising 1.8%in the third quarter of the last fiscal year, 2.4% in the second quarter of the last fiscal year and 7.2% in the first quarter of the last fiscal year, it fell 6.6% in the most recent quarter.
The P/E ratio for NWSA is 50.6, above the industry average of 18.49. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: The P/E Ratio: A Good Market-Timing Indicator
Over the past quarter, the stock price has increased from $23.47 on August 3, 2012 to $23.93. News Corp.'s stock price is on a downward streak. The share price has fallen $1.49 since October 18, 2012.
The Competition: News Corp. is a global media company with operations in film, television, cable programming, satellite television, magazines, and book publishing. The majority of analysts (16 of 21) rate News Corp. a buy. They have grown pessimistic about the stock, as the number of buy ratings has dropped slightly over the past three months.
The company's closest competitor in the printing and publishing industry is News (NWS). Analysts are more optimistic about News Corp. than about News. Only two out of two analysts rate the latter a buy.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: While down from 40 cents three months ago, the consensus estimate has remained unchanged over the past 30 days. For the fiscal year, analysts are projecting earnings of $1.67 per share.
News Corp. is expected to beat last year's reported revenue of $7.96 billion and come in at $8.18 billion for the quarter. News Corp. is expected to report revenue of $34.97 billion for the fiscal year.
Company Performance: Revenue fell year-over-year in the fourth quarter of the last fiscal year to end a three-quarter growth streak. After rising 1.8%in the third quarter of the last fiscal year, 2.4% in the second quarter of the last fiscal year and 7.2% in the first quarter of the last fiscal year, it fell 6.6% in the most recent quarter.
Over the past quarter, the stock price has increased from $23.47 on August 3, 2012 to $23.93. News Corp.'s stock price is on a downward streak. The share price has fallen $1.49 since October 18, 2012.
The Competition: News Corp. is a global media company with operations in film, television, cable programming, satellite television, magazines, and book publishing. The majority of analysts (16 of 21) rate News Corp. a buy. They have grown pessimistic about the stock, as the number of buy ratings has dropped slightly over the past three months.
The company's closest competitor in the printing and publishing industry is News (NWS). Analysts are more optimistic about News Corp. than about News. Only two out of two analysts rate the latter a buy.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
