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Rupert Murdoch’s News Corp sales fall short of expectations
Posted On Aug 12 2015
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News Corp reported a 2 percent fall in quarterly revenue hurt by a strong dollar and a decline in advertising sales at its print publications such as the Wall Street Journal and the New York Post.
Earnings per share, after adjustments for items including a $371 million impairment charge related to Amplify, were 7 cents, compared to 1 cent in the same period last year, besting analysts’ expectations of 5 cents, according to FactSet. The company has a market capitalization of $8.26 billion and a PE ratio of 33.96. That compared with analysts’ projections for $2.18 billion.
“Despite an uneven global economy, very tough currency headwinds and the ongoing transformation of the media landscape, for fiscal 2015 we posted stable revenues, robust Ebitda growth and healthy free cash flow”, said News Corp Chief Executive Robert Thomson.
Shares of News Corp (NASDAQ:NWSA) traded down 1.32% during trading on Tuesday, reaching $14.16. The results were dragged down by the negative impact of foreign currency and weak ad sales. Jefferies Group reissued an “in-line” rating and issued a $20.00 price objective (down previously from $21.00) on shares of News Corp in a report on Saturday, May 9th.
News Corp swung to a net loss of $379 million in the most recent quarter, as it wrote down the value of its Amplify digital-education unit and started a strategic review of the division. This change in Amplify’s strategy and related outlook resulted in a reduction in expected future cash flows for the business. The company will cease its marketing of Amplify but will continue to serve current users.
News Corporation (NASDAQ:NWS) has been handed a rating of 3 on a consensus basis by Zacks Research.
News Corporation is a diversified media and data services firm. Adjusted EPS (as defined in Note 3) were $0.47 compared to $0.46 in the prior year. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other.
