Close

News (NWSA) EBITDA Beat, But Print Trends Remain Weak - Jefferies

November 8, 2016 7:33 AM EST
Get Alerts NWSA Hot Sheet
Price: $26.18 -0.42%

Rating Summary:
    23 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Jefferies analyst John Janedis reiterated a Buy rating and $18 price target on News Corp. (NASDAQ: NWSA) as EBITDA beat, but print trends remain soft.

Janedis commented, "NWSA reported F1Q Adj EBITDA of $137M (ex. Wireless Group transaction exp), slightly better than our $122M due to higher profitability at DRES and HC. That said, the decline in print adv (-11% vs. JEFe -7%), and in particular that of the WSJ (-21%) will be a focus for investors. We expect stabilizing margins and core EBITDA growth in 2H17, however, worsening trends would pose a risk to the thesis."

The firm trimmed FY 2017 EPS from $0.32 to $0.27 and FY 2018 EPS from $0.37 to $0.34.

For an analyst ratings summary and ratings history on News Corp. click here. For more ratings news on News Corp. click here.

Shares of News Corp. closed at $12.22 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Jefferies & Co