News Corp Q1 adjusted profit beats estimates on digital real estate, Dow Jones growth

News

Wed 21:28

Overview
US media and information firm's fiscal Q1 revenue rose 6%, slightly beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Net income climbed 43% to $215 mln on higher segment EBITDA and a divestiture gain

Outlook
News Corp did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers
DOW JONES GROWTH - Higher circulation, licensing, and digital advertising revenues drove 8% revenue growth at Dow Jones, with digital-only subscriptions to The Wall Street Journal up 11%
DIGITAL REAL ESTATE SERVICES - Revenue rose 10%, led by REA Group's price increases and product growth, and Move's higher sales of RealPRO Select, despite lower user volumes at Realtor.com
BOOK PUBLISHING SALES - Book Publishing revenue rose 9% on strong physical and digital sales, particularly in General Books and Children’s Publishing, and higher audiobook sales

Company press release: ID:nBw6jQHkLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$2.28 bln
$2.27 bln (5 Analysts)
Q1 Adjusted EPS
Beat
$0.28
$0.26 (3 Analysts)
Q1 EPS
 
$0.29
 
Q1 Net Income
 
$215 mln
 
Q1 Segment EBITDA
 
$403 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "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 Corporation is $35.00, about 18.8% above its November 3 closing price of $29.46
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)