Global media and publishing company News Corp (NASDAQ:NWSA) will be announcing earnings results tomorrow after market close. Here's what to look for.
News Corp missed analysts' revenue expectations by 1% last quarter, reporting revenues of $2.42 billion, flat year on year. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
Is News Corp a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting News Corp's revenue to grow 2.8% year on year to $2.50 billion, a reversal from the 9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. News Corp has missed Wall Street's revenue estimates four times over the last two years.
Looking at News Corp's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. fuboTV delivered year-on-year revenue growth of 25%, beating analysts' expectations by 6.2%, and Scholastic reported a revenue decline of 10.1%, falling short of estimates by 14%. Scholastic traded down 19.9% following the results.
Read our full analysis of fuboTV's results here and Scholastic's results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. News Corp is down 6% during the same time and is heading into earnings with an average analyst price target of $22 (compared to the current share price of $26.06).
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