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News Corp Q1 adjusted profit beats estimates on digital real estate, Dow Jones growth

By Reuters News


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


Reuters Recommended Reads

  • Nov 4 - Germany's Scout24 Q3 revenue beats on strong subscription growth

  • Nov 4 - Online travel firm Expedia raises annual forecasts on resilient demand

  • Nov 4 - Zillow Q3 revenue rises 7% despite weak housing market


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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