News Corp (NASDAQ:) Unveils $1 Billion Buyback Program Amidst Revenue Growth
Today, News Corp (NASDAQ:) revealed its ongoing share buyback efforts under its $1 billion Repurchase Program. The company, known for its presence in the publishing industry, is authorized to acquire its outstanding Class A and Class B common stock as part of the program.
In the filing with the Australian Securities Exchange (ASX) and the latest SEC filing, News Corp included forward-looking statements regarding its intentions to repurchase its shares from time to time. These plans are subject to various factors, including market conditions, stock prices, applicable laws, and alternative investment opportunities.
While the company has expressed its plan to continue buying back stock, it also acknowledges that these statements are based on current expectations and could be affected by uncertainties and changes in circumstances. Actual results may differ from those currently anticipated.
News Corp has reported a 6% increase in Q4 revenue, reaching approximately $2.6 billion, with profitability rising by 11% to $380 million. This growth was largely driven by book publishing, digital real estate services, and Dow Jones segments.
Moreover, News Corp continues its $1 billion stock repurchase program, reflecting its commitment to returning value to shareholders. The company's subsidiary, REA Group Ltd, is also considering acquiring Rightmove (OTC:) plc, a UK-based real estate portal, which could significantly impact the digital real estate market.
Analysts have reacted positively to these developments, with Loop Capital increasing News Corp's stock price target to $39.00 and Morgan Stanley upgrading its target to $35.00. These recent developments highlight News Corp's strategic financial maneuvers and potential growth in the digital real estate sector.
InvestingPro Insights:
News Corp's $1 billion Repurchase Program is a signal to investors of the company's self-assessment of its value and commitment to shareholder returns. With a current market capitalization of $15.12 billion and a P/E ratio of 58.61, the company's valuation metrics present a mixed picture. However, the adjusted P/E ratio for the last twelve months as of Q4 2024 shows a more favorable figure at 42.87, suggesting potential undervaluation when considering future earnings.
Investors interested in growth potential may find the PEG ratio of 0.73 appealing, indicating that the stock may be undervalued based on earnings growth. Additionally, News Corp's revenue growth and quarterly growth rates signal a positive trajectory for the company's financial performance.
For more insights, InvestingPro offers additional tips on News Corp, providing a deeper dive into the company's financial health and investment potential. With the next earnings date approaching on November 6, 2024, these tips could prove invaluable for investors looking to capitalize on News Corp's future market movements.