NWSA Set to Report Q4 Earnings: Buy Now or Wait for the Results?

Core Insights - News Corporation (NWSA) is set to report its fourth-quarter fiscal 2025 results on August 5, with revenue expectations of $2.10 billion, reflecting an 18.37% decline year-over-year, while earnings per share (EPS) is projected to grow by 11.76% to 19 cents [1][9]. Financial Performance - The company has a mixed earnings surprise history, beating the Zacks Consensus Estimate in two of the last four quarters, missing in one, and matching in another, resulting in an average surprise of 8.51% [2]. - NWSA's fiscal fourth-quarter performance is anticipated to benefit from strong segments such as Digital Real Estate, Book Publishing, and Dow Jones, alongside a disciplined capital return strategy [3]. Strategic Developments - Recent acquisitions, including Oxford Analytica and DragonFly Intelligence, have bolstered NWSA's intelligence capabilities, particularly in geopolitical and macroeconomic analysis [4]. - The Dow Jones Energy segment reported a 10% revenue growth, driven by investments in proprietary pricing tools and a new carbon and clean fuels platform [4]. - Realtor.com is expected to perform well, contributing 22% to revenues, supported by increased demand in rental, seller, and new-home categories [5]. Financial Health - The company authorized a $1 billion share repurchase, indicating confidence in its financial health, supported by $539 million in free cash flow and over $2.1 billion in cash as of March 31, 2025 [6]. - NWSA ended the fiscal third quarter with a net cash position of $130 million, allowing for buybacks without compromising investment priorities [6]. Challenges - The company is likely to face challenges due to ongoing advertising turbulence, particularly in the News Media segment, which saw an 8% revenue decline in the fiscal third quarter [7]. - Advertising revenues fell by $19 million in the fiscal third quarter, impacting segment performance despite cost-cutting measures [7].