News Corporation (NWSA Quick QuoteNWSA - Free Report) is scheduled to report second-quarter fiscal 2025 results on Feb. 5.

The Zacks Consensus Estimate for revenues is pegged at $2.19 billion, indicating a decline of 15.39% from the year-ago quarter’s levels.

The consensus mark for earnings has moved up by a penny to 31 cents per share in the past 30 days, indicating 19.23% growth year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.15%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Let’s see how things have shaped prior to this announcement.

Factors to Consider for NWSA

NWSA’s innovation and development in e-books, integrated with AI and emotional intelligence, bodes well for investors in the second quarter of fiscal 2025. This focused approach to innovation is likely to have strengthened customer engagement and loyalty, potentially driving slow yet steady growth in the coming quarter.

News Corporation’s broadening REA suite of premium products to improve deliverables for clients is expected to have driven the top line in the second quarter of fiscal 2025. NWSA’s enhanced technology and portfolio for sell-and-buy agents in realtor.com is likely to have driven its performance. 

NWSA is likely to have benefited from the transition of consumers from traditional broadcast to OTT consumption. Foxtel, Kayo and Binge are expected to have aided the top line in quarter under review.

However, macroeconomic factors like high interest rates, high mortgage rates, lower transaction volumes, lofty prices and limited inventory are expected to have negatively impacted the top line in the second quarter of fiscal 2025.

NWSA’s dependence on advertising, negatively impacted by lower ad spending by businesses, is expected to have been reflected in the top line in the to-be-reported quarter. In the first quarter of fiscal 2024, revenues in the News Media segment fell 5% to $521 million, primarily due to lower advertising revenues. In the Dow Jones segment, advertising revenues decreased 7%, primarily due to a 5% decline in digital advertising revenues and a 10% fall in print advertising revenues. This trend is expected to have continued in the quarter under review.

The balance between the company's growth initiatives and its ability to mitigate headwinds in challenging segments is likely to have been a key focus in assessing NWSA's overall performance and future prospects.

What Our Model Says for NWSA

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you can see below.

News Corporation currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Impinj (PI Quick QuotePI - Free Report) has an Earnings ESP of +1.41% and flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impinj shares have risen 35.6% in the trailing 12 months. PI is set to report its fourth-quarter 2024 results on Feb. 5.

Lumentum (LITE Quick QuoteLITE - Free Report) currently has an Earnings ESP of +17.01% and a Zacks Rank #2.

Lumentum shares have gained 41.8% in the trailing 12 months. LITE is set to report its second-quarter fiscal 2025 results on Feb. 6.

Qualcomm (QCOM Quick QuoteQCOM - Free Report) has an Earnings ESP of +3.34% and a Zacks Rank #2 at present.

Qualcomm shares have returned 16% in the trailing 12 months. QCOM is set to report its first-quarter fiscal 2025 results on Feb. 5.