News Corp. Beats on Both Top and Bottom Lines
May 10th 2012 10:36PM
Updated May 10th 2012 10:38PM
News Corp. (NAS: NWSA) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), News Corp. beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
News Corp. reported revenue of $8.40 billion. The 23 analysts polled by S&P Capital IQ expected revenue of $8.25 billion on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $8.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.38 for Q3 were 58% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.9%, 240 basis points better than the prior-year quarter. Operating margin was 15.6%, 120 basis points better than the prior-year quarter. Net margin was 11.2%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.61 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $34.08 billion. The average EPS estimate is $1.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 112 members out of 137 rating the stock outperform, and 25 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give News Corp. a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on News Corp. is outperform, with an average price target of $22.49.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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