NWSA's Q3 Earnings Coming Up: Time to Buy, Sell or Hold the Stock?

News Corporation NWSA is scheduled to report third-quarter fiscal 2025 results on May 8.

The Zacks Consensus Estimate for revenues is pegged at $2.01 billion, indicating a decline of 16.84% from the year-ago quarter’s levels.

The consensus mark for earnings has remained steady at 19 cents per share in the past 30 days, indicating 72.73% growth year over year.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while matching the same once, the average surprise being 13.65%

See the Zacks Earnings Calendar to stay ahead of market-making news.

News Corporation Price and EPS Surprise

News Corporation price-eps-surprise | News Corporation Quote

Let’s see how things have shaped prior to this announcement.

Factors to Consider for NWSA

Investors should consider holding News Corporation shares or waiting for a better entry point ahead of the company's fiscal third-quarter 2025 earnings. Following a strong fiscal second-quarter performance, the upcoming quarter faces mixed indicators that warrant a measured approach. Currency headwinds represent a notable concern for the fiscal third quarter, with management indicating the Australian dollar and British pound exchange rates will likely impact reported results. These translation effects might have partially offset operational improvements across the company's portfolio.

Digital Real Estate Services maintained positive momentum with Australian residential listings showing growth in January. However, the U.S. housing market continues to face challenges due to persistently high mortgage rates affecting transaction volumes at realtor.com, though adjacent revenue streams have shown resilience.

The Dow Jones segment enters the third quarter with promising subscription trends as digital circulation revenues improved last quarter. Management anticipates growth acceleration in the second half, but increased B2B investments may create near-term margin pressure despite strong performance in Risk & Compliance and Energy segments. Book Publishing expects more moderate growth compared to previous quarters due to frontlist title timing issues. The segment may not match its prior 8% revenue growth as it faces tougher year-over-year comparisons.

News Media continues navigating advertising market uncertainties with limited forward visibility. While cost initiatives, including the U.K. printing joint venture, provide ongoing benefits, management anticipates more challenging conditions in the latter half of the fiscal year.

The pending Foxtel sale to DAZN represents a significant financial catalyst that could strengthen the balance sheet upon completion. However, this transaction awaits regulatory approvals that might extend beyond the current quarter. Ongoing investments in AI initiatives and associated legal expenses will impact profitability as the company balances opportunities and intellectual property protection in the digital landscape. Given these mixed factors and cautious outlook from leadership, investors should consider waiting for greater clarity around currency impacts and segment performance before adjusting positions.

What Our Model Says for NWSA

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you can see below.

News Corporation currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Affirm AFRM has an Earnings ESP of +63.27% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Affirm shares have lost 14.1% in the year-to-date period. Affirm is set to report its third-quarter fiscal 2025 results on May 8.

StoneCo STNE has an Earnings ESP of +6.25% and flaunts a Zacks Rank of 1 at present.

StoneCo shares have surged 72.8% in the year-to-date period. STNE is set to report its first-quarter 2025 results on May 8.

Baidu BIDU has an Earnings ESP of +8.67% and a Zacks Rank of 2 at present.

Baidu shares have gained 6.7% in the year-to-date period. BIDU is set to report its first-quarter 2025 results on May 21.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research