News Corporation, the global media and information services company, has disclosed further actions under its stock repurchase program, a document filed with the Securities and Exchange Commission (SEC) revealed on Monday. The company, which trades under NASDAQ:NWSA for its Class A common stock and NASDAQ:NWS for its Class B common stock, is engaging in an ongoing effort to buy back up to $1 billion of its outstanding shares.
The SEC filing stated that News Corp (NASDAQ:NWSA) is required to report daily to the Australian Securities Exchange (ASX) any transactions made under this buyback program. While the company routinely includes updates on the repurchase program in its quarterly and annual reports, the latest disclosure provides a more immediate look at its buyback activities.
The details of the transactions made under the repurchase program were not specified in the SEC filing, but exhibits attached to the document were reported to contain information provided to the ASX on the respective dates noted therein.
This move is part of News Corp's broader strategy to manage its capital effectively. Share buybacks are a common practice among public companies, often used to return value to shareholders and to signal confidence in the company's future prospects.
The information in this article is based on a press release statement filed with the SEC.
In other recent news, News Corp has reported a strong financial performance for the fourth quarter of fiscal year 2024, with revenues climbing 6% to approximately $2.6 billion and profitability rising by 11% to $380 million. Growth was significantly driven by the company's diverse sectors, including its book publishing, digital real estate services, and Dow Jones segments. In particular, book publishing revenues grew by 15% year-over-year, and EBITDA increased by over 250%.
Morgan Stanley (NYSE:MS) has updated its financial model for News Corp, leading to an increase in the stock price target from $31.00 to $35.00. The adjustment is based on revised expectations for the company's future earnings before interest, taxes, depreciation, and amortization (EBITDA). The firm's earnings per share (EPS) estimates have been slightly reduced due to assumptions of higher minority interest and tax rates.
Despite a decline of 5% in revenues and a 38% decrease in EBITDA in the News Media segment, News Corp has expressed optimism for fiscal 2025, focusing on streaming, B2B growth, and data offerings. The company also plans to increase investment in first-party data solutions.
These are some of the recent developments in the company.
InvestingPro Insights
Amidst the strategic maneuvers at News Corporation, including the stock repurchase program and the reported financial uptick in its fourth quarter of fiscal year 2024, investors are keeping a keen eye on the company's valuation and market performance. According to real-time data from InvestingPro, News Corp's adjusted market capitalization stands at $15.64 billion, reflecting the company's substantial presence in the media and information services industry.
The company's Price to Earnings (P/E) ratio, a key indicator of investor expectations, is currently at 61.52, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 45.06. This suggests a high level of investor confidence in the company's future earnings potential. Additionally, News Corp's PEG ratio for the same period is 0.77, which could indicate that the stock is potentially undervalued based on its earnings growth rate.
An InvestingPro Tip to consider is the company's Price to Book (P/B) ratio of 1.96, which compares favorably with industry standards, suggesting that the stock may be reasonably valued given the company's assets and financial position. Moreover, with a steady revenue growth of 2.09% in the last twelve months as of Q4 2024, and a more significant quarterly revenue growth of 5.92%, News Corp appears to be on a growth trajectory that could be attractive to long-term investors.
For those interested in a deeper dive, InvestingPro offers additional insights with a total of 15 InvestingPro Tips for News Corp, providing a comprehensive analysis of the company's financial health and investment potential. These tips could be particularly valuable for investors considering News Corp's recent performance and future prospects.
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