News Corp's Q2 revenue up 6%, beats estimates

Overview

• Media and information services firm's fiscal Q2 revenue grew 6%, beating analysts' expectations

• Adjusted EPS beat analysts' expectations

• Company highlighted strong performance in Dow Jones and Digital Real Estate Services segments

Outlook

• News Corp sees favorable signs for second half of fiscal year

Result Drivers

• DOW JONES GROWTH - Dow Jones segment revenues increased 8%, driven by higher circulation, subscription, and advertising revenues

• DIGITAL REAL ESTATE SERVICES - Revenues increased 8%, supported by higher contributions from REA Group and Move

• BOOK PUBLISHING - Revenues grew 6% due to recent acquisitions and strong sales in Christian Publishing and frontlist titles

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer publishing peer group is "buy"

• Wall Street's median 12-month price target for News Corp is $38.00, about 53.9% above its February 4 closing price of $24.69

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBwYXZKKa

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