News (NASDAQ:NWS) Posts Earnings Results

Key Points

• News Corp’s adjusted EPS of $0.28 beat estimates of $0.26, while quarterly revenue of $2.22 billion fell short of the $2.27 billion consensus. On the conference call, the company reported revenue growth of 6% and EBITDA growth of 19%, marking its 14th consecutive quarter of year-over-year EBITDA growth.
• Dow Jones and Book Publishing delivered growth: Dow Jones revenue rose 8%, with digital-only subscriptions up 10% to nearly 6.5 million; Book Publishing revenue increased 9% and EBITDA rose 29%.
• Digital Real Estate Services revenue grew 10% and EBITDA rose 34%, but operating indicators were mixed, including declines in Australian listings and U.S. leads. Executives also highlighted AI-content licensing efforts and said the first payment from the $1.5 billion Anthropic settlement is expected soon.

News (NASDAQ:NWS - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.26 by $0.02, FiscalAI reports. News had a return on equity of 7.09% and a net margin of 6.35%. The company had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.27 billion.

Here are the key takeaways from News' conference call:

• News Corp reported a strong start to fiscal 2027: revenue rose 6% to $2.3 billion, total segment EBITDA increased 19% to $403 million, and adjusted EPS rose to $0.28 from $0.22. The company said this marked its 14th consecutive quarter of year-over-year EBITDA growth.
• Dow Jones revenue grew 8% and EBITDA rose 11%, with growth in Risk & Compliance, digital subscriptions and advertising. Digital-only subscriptions increased 10% to nearly 6.5 million, and digital advertising grew 12%.
• Digital Real Estate Services revenue increased 10% and EBITDA rose 34%, despite pressured housing markets; REA benefited from higher yield, while Realtor.com reported its eighth consecutive quarter of revenue growth. However, Australian listings fell 2% in the quarter, U.S. leads declined 11%, and October listings remained down year over year.
• Book Publishing revenue rose 9% and EBITDA increased 29%, with audiobooks growing 13% and strong demand for new releases. Management said higher costs are expected to support its upcoming frontlist program.
• Executives said News Corp is pursuing AI licensing opportunities and expects the first payment from the $1.5 billion Anthropic settlement in the near term, while continuing to challenge alleged unauthorized use of its content. They did not quantify AI-related cost savings or potential licensing revenue.

News Trading Up 4.1%

Shares of NASDAQ:NWS traded up $1.33 during mid-day trading on Wednesday, reaching $33.39. The stock had a trading volume of 1,807,430 shares, compared to its average volume of 916,585. The firm has a market cap of $18.07 billion, a PE ratio of 27.17 and a beta of 1.00. The firm has a 50 day simple moving average of $32.88 and a two-hundred day simple moving average of $30.47. The company has a current ratio of 1.62, a quick ratio of 1.51 and a debt-to-equity ratio of 0.22. News has a twelve month low of $25.49 and a twelve month high of $35.76.

Wall Street Analysts Forecast Growth

NWS has been the topic of a number of recent research reports. Zacks Research lowered News from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings raised News from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, October 26th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, News currently has an average rating of "Moderate Buy".

About News

News Corporation NASDAQ: NWS is a global media and information services company with businesses spanning news, publishing, digital real estate services and subscription-based content. The company operates through a portfolio of brands that serve consumers, professionals and businesses across multiple markets.

Its major operations include Dow Jones, which provides business news, financial information and data through publications such as The Wall Street Journal and Barron's; News Corp Australia and News UK, which publish newspapers and digital news platforms; and HarperCollins Publishers, a global book publishing company.

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