Global media and publishing company News Corp (NASDAQ: NWSA) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
News Corp beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $2.24 billion, down 13.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates.
Is News Corp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting News Corp’s revenue to decline 17.8% year on year to $1.99 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. News Corp has missed Wall Street’s revenue estimates three times over the last two years.
Looking at News Corp’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. fuboTV delivered year-on-year revenue growth of 3.5%, missing analysts’ expectations by 28.7%, and Hasbro reported revenues up 17.1%, topping estimates by 14.8%. fuboTV traded down 13.3% following the results while Hasbro was up 15.9%.
Read our full analysis of fuboTV’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.7% on average over the last month. News Corp is up 17% during the same time and is heading into earnings with an average analyst price target of $35.53 (compared to the current share price of $28.04).
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