News (NASDAQ:NWS) Issues Quarterly Earnings Results

News (NASDAQ:NWS) released its earnings results on Thursday. The company reported $0.40 earnings per share for the quarter, beating analysts’ consensus estimates of $0.25 by $0.15, FiscalAI reports. News had a return on equity of 5.68% and a net margin of 13.80%.The firm had revenue of $2.31 billion during the quarter, compared to the consensus estimate of $2.30 billion.

Here are the key takeaways from News’ conference call:

• Companywide results accelerated — Q2 revenue rose 6% to $2.4 billion, total segment EBITDA increased 9% to $521 million, adjusted EPS was $0.40, and margins improved to 22.1%.
• Dow Jones showed exceptional performance — revenue +8% to $648M, record ~30% margins with double‑digit EBITDA growth, driven by digital subscriptions, a record $87M in digital advertising, and 20% growth in Risk & Compliance.
• Digital Real Estate momentum continued — segment revenue +8% to $511M and EBITDA +11% to $206M, with Realtor.com revenue up 10%, improving lead volumes and audience share, and REA Australia growing 7%.
• Capital allocation is shareholder‑friendly — the company repurchased $172M of shares in Q2, said buybacks will be meaningfully higher in H2, and highlighted strong free cash flow and an improved Moody’s outlook.
• Some operating headwinds and one‑offs — HarperCollins recorded a $16M inventory write‑off that pressured publishing margins, News Media revenues were flat with EBITDA down 5% amid weak print ads and new investments, and GAAP net income fell 21% YoY due mainly to the absence of a prior‑year $87M REA gain.

News Price Performance

NWS traded down $1.22 on Friday, reaching $26.17. The stock had a trading volume of 1,340,925 shares, compared to its average volume of 1,255,586. The company has a current ratio of 1.76, a quick ratio of 1.63 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $14.69 billion, a price-to-earnings ratio of 12.65 and a beta of 0.97. News has a fifty-two week low of $25.82 and a fifty-two week high of $35.58. The firm has a 50-day moving average of $29.89 and a 200-day moving average of $31.25.

News Dividend Announcement

The company also recently announced a dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Wednesday, March 11th will be issued a $0.10 dividend. This represents a yield of 73.0%. The ex-dividend date of this dividend is Wednesday, March 11th. News’s dividend payout ratio is presently 9.66%.

Key Headlines Impacting News

Here are the key news stories impacting News this week:

• Positive Sentiment: Q2 results beat expectations — NWS reported $0.40 EPS vs. $0.25 consensus and revenue of $2.31B (vs. $2.30B), showing solid margins that support near‑term cash generation. Earnings Release / Transcript
• Positive Sentiment: $1.0 billion share repurchase announced, targeted at Nasdaq-listed stock — buyback is a direct capital-return catalyst that reduces float and can support the Nasdaq-listed ADS price. (Company notes the program excludes ASX CDIs; see next item.) TipRanks: $1 Billion Repurchase Details
• Positive Sentiment: Declared a US$0.10 per-share interim dividend (record Mar 11; payable Apr 8), adding a modest cash-return element for shareholders. TipRanks: Dividend Announcement
• Neutral Sentiment: Company will host a Dow Jones investor briefing (Mar 16) to detail the business transformation and strategy — could provide incremental clarity and a potential catalyst depending on new guidance or metrics revealed. BusinessWire: Dow Jones Investor Briefing
• Neutral Sentiment: Press coverage highlights revenue growth at Dow Jones and real‑estate businesses and management’s comment that the back half of the fiscal year shows “favorable signs” — positive tone but not new financials. WSJ: Revenue Rises on Dow Jones, Real‑Estate Growth
• Neutral Sentiment: Earnings call transcript is available for detail on segment performance and outlook — useful for parsing whether the beat implies sustained upside or a one‑time swing. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Some reporting/data quirks (one bulletin cited a 73% “yield” figure) could confuse investors and indicate noisy headline metrics — verify dividend yield and per‑share instrument (NASDAQ ADS vs. ASX CDIs) before trading decisions.

Institutional Investors Weigh In On News

Hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC raised its stake in shares of News by 44.2% during the first quarter. AQR Capital Management LLC now owns 26,873 shares of the company’s stock valued at $816,000 after acquiring an additional 8,241 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in News by 58.3% in the second quarter. Russell Investments Group Ltd. now owns 23,542 shares of the company’s stock valued at $808,000 after purchasing an additional 8,670 shares during the period. CANADA LIFE ASSURANCE Co raised its position in News by 2.3% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 19,333 shares of the company’s stock worth $664,000 after purchasing an additional 435 shares during the last quarter. Vident Advisory LLC lifted its holdings in News by 39.7% during the 3rd quarter. Vident Advisory LLC now owns 18,010 shares of the company’s stock worth $622,000 after buying an additional 5,116 shares during the period. Finally, Marshall Wace LLP bought a new stake in shares of News in the 2nd quarter valued at about $462,000. 14.63% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Weiss Ratings downgraded shares of News from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, January 23rd. Zacks Research upgraded shares of News to a “hold” rating in a research report on Tuesday, January 13th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has an average rating of “Hold”.

About News

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.