Needham & Company Maintains a 'Hold' on News Corp. (NWSA); ROIC Trends-June Quarter

Needham & Company maintains a 'Hold' on News Corp. (NASDAQ: NWSA).

Needham analyst says, "There is currently a 90% correlation between FY12E ROIC and media industry share prices. Highlights of NWSA’s capital allocation trends in the June 30, 2011 quarter include 1. Cash From Operations is a general proxy for ROIC trends. Cash from Operations posted positive results in the June quarter, up $1.2B y/y to $2.0B, after posting a $590mm decline y/y in the March quarter. 2. CapX is a lead-indicator of invested capital growth. Rising CapX implies a growing asset base, which can put downward pressure on forward-year ROICs. NWSA’s CapX rose 40% to $354mm in the June 2011 quarter. 3. Investment in Films & TV Programming. NWSA’s investment in film and TV was flat at $4.2B in the June quarter."

"We estimate that NWSA’s ROIC will be flat at 8.4% in FY12E and that its WACC will be flat at 10.1%."

For more ratings news on News Corp. click here and for the rating history of News Corp. click here.

Shares of News Corp. closed at $16.13 yesterday.

---

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

---

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Canaccord Downgrades York Space Systems (YSS) to Hold, 'Supply chain and contract timing uncertainty'
• Realtor.com® July Rent Report: Renting a Starter Home Costs Less Than Buying in All 50 Largest U.S. Metros, but the Gap Is Narrowing