NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 58.33% and other important driving factors, this stock has surged by 41.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NWSA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- NEWS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEWS CORP increased its bottom line by earning $1.13 versus $0.97 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.13).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 46.6% when compared to the same quarter one year prior, rising from $639.00 million to $937.00 million.
- NWSA's revenue growth trails the industry average of 13.3%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, NWSA has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
News Corporation operates as a diversified media company worldwide. The company has a P/E ratio of 15.3, equal to the average media industry P/E ratioand below the S&P 500 P/E ratio of 17.7. News has a market cap of $35.84 billion and is part of the
industry. Shares are up 26.6% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.