News Corporation: Deserves An Upgrade On Improving Bottom Line

2025-02-06 13:24:43 ET

Summary

• News Corporation's Q2 2025 results exceeded expectations, with revenue rising 4.8% to $2.24 billion and earnings per share increasing to $0.40, driving stock gains.
• Key growth areas included the Dow Jones segment, Digital Real Estate Services, and Book Publishing, while the News Media segment saw a slight revenue decline.
• The sale of Foxtel Group to DAZN and partnerships with Microsoft and OpenAI highlight strategic moves to monetize assets and leverage content libraries.
• Improved financial metrics and strategic deals make NWS stock more attractive, justifying an upgrade to a soft "buy" despite the stock's recent rise.

In after-hours trading on February 5th, shares of News Corporation ( NWS , NWSA ) managed to climb 5.3%. This was after seeing a 1.2% rise in price during the trading day. This rather meaningful upside momentum was driven by optimism centered around the company's earnings release for the second quarter of the 2025 fiscal year. Management ended up reporting revenue and earnings that exceeded analysts’ expectations . Key parts of the company showed solid growth and cash flows rows where they were most important....

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