After hours on Tuesday global media company News Corporation ( NWSA ) reported first quarter profits that beat Wall Street expectations thanks to growth at the company's cable television networks.
The New York, New York based company reported that its quarterly net income was $2.23 billion, or 94 cents per share, versus a net income of $738 million,or 28 cents per share, in the same quarter a year ago. Adjusting for excluded items the Rupert Murdoch owned company had earnings of $1.012 billion, or 43 cents per share, compared to $837 million, or 32 cents per share, a year earlier. According to Thomson Reuters, analysts expected NWSA to have adjusted earnings of 38 cent per share.
The media giant that owns Fox Broadcasting and The Wall Street Journal had quarterly revenues of $8.14 billion, a +2% increase from last year's revenue of $7.96 billion. Wall Street estimated News Corp would have revenues of $8.16 billion.
News Corp attributed its earnings beat thanks to a 23 percent increase in cable network operating income to $953 million, lifted by growth at regional sports networks, the FX cable network and Fox News Channel.
News Corp shares were up 52 cents, or +2.14%, in premarket trading on Wednesday.
The Bottom Line
Shares of News Corp ( NWSA ) have a .70% dividend yield, based on last night's closing stock price of $24.28. The stock has technical support in the $21-$22 price area. The shares are trading near all-time highs.
News Corp ( NWSA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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