News Corporation NWSA is set to report first-quarter fiscal 2025 results on Nov. 7.

The Zacks Consensus Estimate for revenues is pegged at $2.56 billion, indicating an increase of 2.47% from the year-ago quarter’s levels.

The consensus mark for earnings has remained steady at 16 cents per share in the past 30 days.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Let’s see how things have shaped prior to this announcement.

News Corporation Price and EPS Surprise

News Corporation price-eps-surprise | News Corporation Quote

Factors to Consider for NWSA

NWSA’s innovation and development in e-books, integrated with AI and emotional intelligence, bodes well for investors in the first quarter of fiscal 2025. This focused approach to innovation is likely to have strengthened customer engagement and loyalty, potentially driving sustained growth in the coming quarter.

NWSA’s agreement with OpenAI to expand offerings in journalism and reduce less principled actors is expected to have increased consumer momentum in the first quarter of fiscal 2025.

News Corporation’s broadening REA suite of premium products to improve deliverables for clients is expected to have driven the top line in the first quarter of fiscal 2025. NWSA’s enhanced technology and portfolio for sell and buy agents in realtor.com is expected to have driven its performance. 

NWSA is expected to have benefited from the transition of consumers from traditional broadcast to OTT consumption. Foxtel, Kayo and Binge are expected to have positively contributed to the topline in first quarter of fiscal 2025.

However, macroeconomic factors like high interest rates, high mortgage rates, lower transaction volumes, lofty prices and limited inventory are expected to have negatively impacted the top line in the first quarter of fiscal 2025.

NWSA’s dependence on advertising, negatively impacted by lower ad spending by businesses amid the conflict between Russia and Ukraine, is expected to have been reflected in the top line in the to-be-reported quarter. In the fourth quarter of fiscal 2024, revenues in the News Media segment fell 5% to $545 million, primarily due to lower advertising revenues. This trend is expected to have continued in the first quarter of fiscal 2025.

The balance between the company's growth initiatives and its ability to mitigate headwinds in challenging segments is likely to have been a key focus in assessing NWSA's overall performance and future prospects.

What Our Model Says for NWSA

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you can see below.

News Corporation currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Flutter Entertainment PLC FLUT has an Earnings ESP of +172.73% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flutter Entertainment’s shares have gained 19.1% year to date. FLUT is set to report its third-quarter 2024 results on Nov. 12.

DraftKings DKNG has an Earnings ESP of +13.83% and carries a Zacks Rank of 3 at present.

DraftKings’ shares have gained 1.5% year to date. DOCN is set to report its third-quarter 2024 results on Nov. 7.

Airbnb ABNB has an Earnings ESP of +0.12% and carries a Zacks Rank #3 at present.

ABNB’s shares have gained 1% year to date. ABNB is set to report third-quarter 2024 results on Nov. 7.

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News Corporation (NWSA) : Free Stock Analysis Report

DraftKings Inc. (DKNG) : Free Stock Analysis Report

Airbnb, Inc. (ABNB) : Free Stock Analysis Report

Flutter Entertainment PLC (FLUT) : Free Stock Analysis Report

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