News Corp Q2 Profit Jumps on Strong Cable Network Growth (NWSA)
Late Wednesday media and entertainment giant News Corp (NWSA) posted a first-quarter net income that more than doubled, as adjusted net EPS and revenue beat the consensus estimates.
The New York-based company said its second-quarter net income rose to $2.38 billion, or $1.01 per share, from $1.06 billion, or 42 cents per share, earned last year. Adjusted earnings for the quarter came in at $1.0 billion, or 44 cents per share, versus $981 million, or 39 cents per share, a year earlier.
Quarterly revenue grew 5% to $9.43 billion from $8.98 billion in the year earlier period.
These results beat the Wall Street views as analysts polled by Thomson Reuters were expecting earnings to be 42 cents per share on revenue of $9.27 billion.
News Corp has been negatively affected by its European assets as the economy in Europe continues to struggle. Also, on the home front News Corp cited Fox Broadcast Network as a source of weakness as ratings declined due poor programming, three fewer World Series games, and high football broadcasting costs.
However, News Corp’s strength continues to be in its cable networks. This segment saw a 7% growth in operating income and 18% growth in revenue. By the end of the year the company plans to spin off its cable and publishing assets.
News Corp shares were down 52 cents, or -1.84, during pre-market trading on Thursday. The stock is up +46.37% over the past year.
The Bottom Line
Shares of News Corp (NWSA) have a dividend yield of 0.60% based on last night’s closing price of $28.22 and the company’s annualized dividend yield of 17 cents per share.
News Corp (NWSA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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