Back to top

Image: Bigstock

News Corp. (NWSA) Q3 Earnings: What's in Store this Time?

Read MoreHide Full Article

News Corporation (NWSA - Free Report) , the diversified media conglomerate, is slated to report third-quarter fiscal 2017 results on May 9. The question lingering in investors’ minds is whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, News Corporation underperformed the Zacks Consensus Estimate by an average of 7.8%.

Which Way are Estimates Treading?

Let’s look at earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company right before earnings release. The current Zacks Consensus Estimate for the quarter under review has been stable in the past 30 days, and is currently pegged at 4 cents, in line with the year-ago quarter. Analysts polled by Zacks expect revenues of $1,866 million compared with $1,891 million reported in the prior-year period.

What the Zacks Model Unveils?

Our proven model does not conclusively show that News Corporation is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

News Corporation has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 4 cents. The company’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

News Corporation Price, Consensus and EPS Surprise

 

News Corporation Price, Consensus and EPS Surprise | News Corporation Quote

Factors Influencing this Quarter

News Corporation is in a transitionary phase, looking to diversify revenue streams through strategic acquisitions and operational enhancement. The company is expanding its digital offerings, along with greater emphasis on real estate businesses. However, foreign currency headwinds and soft print advertising demand continue to weigh upon the company’s performance to an extent.

Advertising, which forms a major part of News Corporation’s total revenue (approximately 44% of fiscal 2016 total revenue), remains highly vulnerable to the economic conditions. Advertising revenue fell 5% during the second quarter of fiscal 2017 at the News and Information Services segment. Adverse foreign currency fluctuations hurt total revenue by $53 million.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Nexstar Media Group, Inc. (NXST - Free Report) currently has an ESP of +29.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lions Gate Entertainment Corp. (LGF.A - Free Report) has an ESP of +6.06% and has a Zacks Rank #3.

Tribune Media Company has an ESP of +28.57% and carries a Zacks Rank #3.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


News Corporation (NWSA) - free report >>

Nexstar Media Group, Inc (NXST) - free report >>

Lions Gate Entertainment Corp. (LGF.A) - free report >>

Published in