News (NWSA) EBITDA Beat, But Print Trends Remain Weak - Jefferies
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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.
Shares of News Corp. closed at $12.22 yesterday.
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