News Corp Shares Fall on Weaker-Than-Expected Financials
News Corp reported fiscal first-quarter financial results that underwhelmed investors Monday, causing the stock to fall as much as 4 percent after the closing bell.
In its first earnings report since splitting from 21st Century Fox, News Corp said it earned net income of $38 million, reversing a year-ago loss of $83 million. Revenue fell 3 percent to $2.1 billion.
Excluding some items, News Corp earned 3 cents per share, while Wall Street expected about a nickel. Analysts also expected about $80 million more in revenue.
The company's cable network programming unit, consisting of foreign TV assets, brought in $132 million in revenue during the quarter. The segment didn't exist a year ago.
News and information services, which includes Dow Jones, The Wall Street Journal and several Australian newspapers, showed a 10 decline in revenue to $1.5 billion.
The conglomerate's digital real estate services segment dropped 11 percent in revenue to $90 million and book publishing fell 7 percent to $328 million. "Other" dropped 21 percent to $27 million.
"Our first quarter as the new News was the beginning of a journey in the digital development of the company," said CEO Robert Thomson. "There are certainly headwinds in Australia, magnified by inauspicious foreign currency movements, but we have been consistently cost conscious and are transforming our publishing operations longer-term into multi-platform businesses."
Shares of News Corp fell 1 percent to $17.42 during the regular session Monday before dropping below $17 after the closing bell.