News Corp Q1 adjusted profit beats estimates on digital real estate, Dow Jones growth
Overview
US media and information firm's fiscal Q1 revenue rose 6%, slightly beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Net income climbed 43% to $215 mln on higher segment EBITDA and a divestiture gain
Outlook
News Corp did not provide specific financial guidance for the current quarter or full year in its press release
Result Drivers
DOW JONES GROWTH - Higher circulation, licensing, and digital advertising revenues drove 8% revenue growth at Dow Jones, with digital-only subscriptions to The Wall Street Journal up 11%
DIGITAL REAL ESTATE SERVICES - Revenue rose 10%, led by REA Group's price increases and product growth, and Move's higher sales of RealPRO Select, despite lower user volumes at Realtor.com
BOOK PUBLISHING SALES - Book Publishing revenue rose 9% on strong physical and digital sales, particularly in General Books and Children’s Publishing, and higher audiobook sales
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Slight Beat* | $2.28 bln | $2.27 bln (5 Analysts) |
Q1 Adjusted EPS | Beat | $0.28 | $0.26 (3 Analysts) |
Q1 EPS | $0.29 | ||
Q1 Net Income | $215 mln | ||
Q1 Segment EBITDA | $403 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer publishing peer group is "buy"
Wall Street's median 12-month price target for News Corporation is $35.00, about 18.8% above its November 3 closing price of $29.46
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)