Overview

• US media and information services firm's fiscal Q3 revenue rose 9%, beating analyst expectations

• Adjusted EPS for fiscal Q3 rose to $0.21, beating analyst expectations

• Growth driven by Digital Real Estate, Dow Jones and Book Publishing segments

Outlook

• News Corp expects strong growth in free cash flow generation for the full fiscal year

• Company says potential AI-related deals should have a positive impact on revenue and profitability

• Company cites continued strength in Q4 and expects a strong fiscal finish

Result Drivers

• DIGITAL REAL ESTATE GROWTH - Higher revenues at REA Group, driven by positive foreign exchange impacts and strong Australian residential performance, and at Move, due to premium offerings and growth in adjacent markets

• DOW JONES SEGMENT - Growth in professional information business, especially Risk & Compliance and Energy, and higher digital advertising revenues

• BOOK PUBLISHING SALES - Higher physical and digital book sales, led by Rachel Reid’s Game Changers and supported by recent acquisitions

Company press release: ID:nBw3nmHxda

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Beat	$2.19 bln	$2.11 bln (6 Analysts)
Q3 Adjusted EPS	Beat	$0.21	$0.18 (4 Analysts)
Q3 Segment EBITDA		$343 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer publishing peer group is "buy"

• Wall Street's median 12-month price target for News Corp is $32.40, about 23.7% above its May 6 closing price of $26.20

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 25 three months ago

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