NEW YORK (TheStreet) -- News Corp. (NWSA) shares are falling 6.3% to $15.01 in trading on Wednesday after the media company reported third quarter financials that failed to meet analysts expectations after the closing bell yesterday.
The New York City-based Wall Street Journal and Fox Sports parent company reported third quarter earnings of 5 cents per share, a 55% decline from the 11 cents per share the company earned during the same period last year, missing analysts' 6 cent per share expectations.
The company also reported generating $2.06 billion in revenue during the period, falling slightly from the $2.08 billion it generated in the year ago period, and missing analysts' $2.11 billion expectations for the period.
The company's cable network programming revenue rose 3% over the previous year, while its news and information service revenues, which represents about 65% of its business, decreased 9%.
TheStreet Ratings team rates NEWS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWS CORP (NWSA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: NWSA Ratings Report