News (NASDAQ:NWS) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

News (NASDAQ:NWS) released its quarterly earnings results on Wednesday. The company reported $0.28 EPS for the quarter, topping the consensus estimate of $0.26 by $0.02, FiscalAI reports. The firm had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.27 billion. News had a return on equity of 7.09% and a net margin of 6.35%.

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 Stock Down 11.9%

News stock traded down $3.96 during midday trading on Thursday, hitting $29.43. The stock had a trading volume of 1,291,890 shares, compared to its average volume of 1,377,323. The company has a current ratio of 1.62, a quick ratio of 1.51 and a debt-to-equity ratio of 0.22. The stock has a market cap of $15.92 billion, a P/E ratio of 28.56 and a beta of 1.00. News has a 12 month low of $25.49 and a 12 month high of $35.76. The business has a fifty day moving average price of $32.88 and a 200 day moving average price of $30.47.

Analyst Ratings Changes

Several brokerages have issued reports on NWS. Weiss Ratings raised shares of News from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, October 26th. Zacks Research cut shares of News from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, News currently has a consensus 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.