Earnings Preview: News Corp.

| About: News Corporation (NWS)

News Corp. (NASDAQ:NWS) is expected to report Q4 earnings after the market close on Wednesday, August 8 with a conference call scheduled for 4:30 pm ET.


Analysts are looking for EPS of 32c on revenue of $8.73B. The consensus range is 27c-36c for EPS, and $8.27B-$9.03B for revenue, according to First Call. After reporting better-than-expected EPS and revenue in Q3, the company expected Q4 revenue from publishing and film segments to be lower on a year-over-year basis. It also expected FY12 segment operating income growth in the low-mid teens. Earlier in the quarter, News Corp. announecd its intention to split into two companies, separating its publishing assets from its entertainment business. Rupert Murdoch will serve as chairman of both companies and said he has no plans to leave anytime soon. According to Bloomberg, company returns could jump as much as 32% after the split. Investors will look for any material updates on the upcoming company split. The company may also provide color on the legal battles it has been mired in the past few months regarding illegal reporting tactics. Former News Corp. executive Rebekah Brooks was recently charged with perverting the course of justice and three counts of phone hacking. The company should also give updates on its results in Entertainment, including its box office movie results with "Ice Age" and "Prometheus," spring finale TV numbers, and its partnerships with Roku and Hulu.

Analyst Views

News Corp. was upgraded to Buy at Citigroup and at Needham. It's target price was also raised at BTIG and RBC Capital.