Earnings Preview: News Corporation

News Corporation (NWS) is expected to report Q1 earnings after the market close on Wednesday, November 4 with a conference call scheduled for 4:30 pm ET.

Guidance

Analysts are looking for a profit of 18c on revenue of $7.16B. The consensus range is 16c-20c for EPS, and revenue of $6.83B-$7.5B, according to First Call. In August, CEO Rupert Murdoch pledged that the company will charge for content next year at its Web sites, but Valleywag said they wouldn't be surprised to see Murdoch reverse his position. The company is also seeking cash retransmission fees from distributors, asking cable companies and other distribution partners to pay a small portion of the profits they make by reselling broadcast channels which will help to ensure the health of the over-the-air industry in America.

Analyst Views

Bernstein analyst Michael Nathanson believes News Corp will report EPS of 86c for FY10, but this number may be higher if News Corp is successful in renegotiating its retransmission agreements over the next few years. News Corp shares rose 32% during the quarter.