News (NASDAQ:NWS) Issues Quarterly Earnings Results

News (NASDAQ:NWS) posted its quarterly earnings data on Wednesday. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.11, FiscalAI reports. The firm had revenue of $2.25 billion during the quarter, compared to analysts’ expectations of $2.25 billion. News had a return on equity of 6.12% and a net margin of 12.92%.

Here are the key takeaways from News’ conference call:

• Record profitability and cash generation: Fiscal Q4 revenue rose 11% to $2.3 billion and total segment EBITDA increased 31% to $423 million, while full-year free cash flow climbed 42% to $811 million.
• Core growth engines remained strong. Dow Jones EBITDA grew 20%, Digital Real Estate Services EBITDA surged 46%, and HarperCollins revenue increased 15%; management also reiterated its path toward $1 billion of Dow Jones EBITDA by fiscal 2030.
• News Corp repurchased $643 million of shares in fiscal 2026, more than four times the prior year’s amount, and said its strong balance sheet and cash flow provide flexibility for continued capital returns.
• AI licensing is expanding: Management said the Meta and OpenAI partnerships are contributing to the business, with additional horizontal and industry-specific deals in the pipeline, while litigation continues against companies accused of using News Corp content without authorization.
• Management flagged ongoing risks from Middle East developments, higher mortgage rates and challenging housing conditions, as well as incremental costs for the California Post rollout and a difficult first-quarter comparison in News Media.

News Trading Up 1.3%

NASDAQ:NWS opened at $33.13 on Thursday. The firm has a market capitalization of $18.14 billion, a P/E ratio of 16.48 and a beta of 0.88. The company has a quick ratio of 1.59, a current ratio of 1.70 and a debt-to-equity ratio of 0.21. The company has a fifty day moving average of $30.43 and a 200 day moving average of $29.26. News has a 52 week low of $25.49 and a 52 week high of $35.58.

News Announces Dividend

The company also recently announced a dividend, which will be paid on Wednesday, October 7th. Investors of record on Wednesday, September 9th will be paid a $0.10 dividend. This represents a dividend yield of 60.0%. The ex-dividend date of this dividend is Wednesday, September 9th. News’s payout ratio is presently 9.95%.

Institutional Trading of News

A number of institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC purchased a new position in News during the 2nd quarter valued at about $30,000. ExodusPoint Capital Management LP purchased a new position in shares of News during the fourth quarter valued at approximately $37,000. Arax Advisory Partners bought a new position in shares of News during the fourth quarter valued at approximately $47,000. Smartleaf Asset Management LLC lifted its stake in News by 74.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,056 shares of the company’s stock worth $62,000 after acquiring an additional 878 shares during the period. Finally, Danske Bank A S purchased a new position in News during the 3rd quarter valued at $97,000. 14.63% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have issued reports on NWS. Weiss Ratings raised News from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, July 13th. Zacks Research lowered shares of News from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, News currently has a consensus rating of “Moderate Buy”.

News Company Profile

News Corporation (NASDAQ: NWS) is a global media and information services company engaged in news and digital real estate, book publishing and other media businesses. The company’s operations include print and digital newsbrands, business and financial information services, consumer platforms for property listings, and a major book publishing arm. Through its subsidiaries and brands, News Corp produces news content, market and financial reporting, online real-estate marketplaces and trade and consumer publishing products.

Key areas of activity include news and information, where the company publishes national and regional newspapers and operates business information services; book publishing through a well-known global publisher; and property-related digital businesses that operate online marketplaces for real estate listings.