Earnings Preview: News Corp Reports Fiscal Q2 Results Wednesday

| About: News Corporation (NWSA)

News Corp Inc (NASDAQ:NWSA) is expected to report last fiscal quarter's results after the closing bell on February 8, 2012.

News Corporation operates as a diversified media company worldwide. The company was founded in 1922 and is headquartered in New York, New York. News Corp trades an average of 15.1 million shares per day and has a marketcap of $33.1 Billion.

52 Week High: $19.79
52 Week Low: $13.38
Book Value: $10.72
Float Short: 2.26%

Analysts are expecting an improvement of $0.02 in earnings per share compared to last quarter's results of $0.32. The estimated mean earnings are $0.34 per share. Analyst estimates range between $0.31 and $0.36 per share.

The current trailing twelve months P/E ratio is 15.8. The forward P/E ratio is 13.88. From a month ago, the stock has increased in price 2.43%, with a one year change of 18.41%. The stock is performing similar when compared to the general stock market up to this point. When reviewed with the S&P 500, the year up to date positive change is 0.73%.

The 60 and 90 day moving averages crossed up over the 200 day moving average back in December, and the stock really hasn't looked back since. Like most companies so far this year the stock is up nicely. Unlike many, though, News appears to be ready to make another leg higher, and I believe $20 will at leat be tested if not breached. Even so, with the impressive run up since last fall it may be a good idea to look at options as a method of hedging into earnings, either writing covered calls or with puts.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $33.41 billion for 2011 vs. $32.78 billion for 2010. The bottom line has rising earnings year-over-year of $2.74 billion for 2011 vs. $2.54 billion for 2010.The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $4.54 billion for 2011 vs. $3.71 billion for 2010.

Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins in the earnings release to make sure that the bottom line is keeping up with the top line.

The short interest is relatively low at 2.26%. Be sure to look over the chart below with the short interest in both total shares shorted and number of days to cover short interest based on daily volume. This will give you an idea of the trend. While still low by percentage, it's moving higher.

Here is a look at the fiscal year revenue:


Here is the last few quarters to get an idea how well they perform compared to estimates:

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for NWSA:


The number of days to cover short interest based on average daily trading volume for NWSA:


I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.