Why the News Corp (ASX:NWS) share price is at multi-year highs

The News Corp (ASX:NWS) share price closed at a 5-year high on Friday following the company's half-year results announcement. What's new today?

| More on:
Top asx share price represented by paper cutout image of mountain peaks with red flag

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

News Corporation (ASX: CDI) shares hit a new, 5-year high last week. Friday saw the News Corp share price surge 13.2% higher to close at $28.41 after the company's earnings release.

What was driving the News Corp share price?

Shares in the Aussie media group surged higher despite what appeared to be a relatively benign half-year result. News Corp could be one to watch again today after releasing another regulatory filing, its 10-Q report, which outlines the more detailed statutory accounts.

News Corp reported second quarter revenue (Q2 2021) of $2.41 billion, down 3% from the same time last year. The softer revenue result was largely driven by its News Media segment, hampered by the closure of several community newspapers.

Adjusted revenues edged 2% higher while net income more than doubled from $103 million last year to $261 million. Positively for the company and its shareholders, revenues climbed across all major operating segments compared to the first half last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 40% higher. That was largely driven by improved operating trends and cost reductions alongside favourable currency impacts.

Adjusted earnings per share (EPS) nearly doubled, climbing to 34 cents compared to 18 cents in Q2 2020.

Importantly, the News Corp dividend remained unchanged at US10 cents per share, the same level as the group paid in its interim 2020 distribution.

It seems those earnings figures were enough for investors, with the News Corp share price surging higher on Friday. In fact, the Aussie media company was Friday's top performing share amongst the S&P/ASX 200 Index (ASX: XJO).

Friday's surge means the News Corp share price is now up 22.7% in 2021 so far. That represents a new 5-year high for the Aussie media group which now boasts a $14.8 billion market capitalisation.

Foolish takeaway

Investors have been impressed by the latest results which sent the News Corp share price surging to new highs on Friday.

The Aussie media share may be one to watch again in trading today as investors mull over the detailed 10-Q report.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on 52-Week Highs

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
52-Week Highs

7 ASX 200 shares smashing new highs on Tuesday

Here's why these companies are hitting new 52-week highs on Tuesday.

Read more »

Hands reaching high for a trophy with a sunset in the background.
52-Week Highs

6 ASX 200 shares smashing new highs while the market dives today

Do you own any of these lucky ASX 200 stocks?

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.
Gold

14 ASX gold stocks unearthing fresh 52-week highs today

Do you own any of these hot gold miners?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
52-Week Highs

These 16 ASX 200 shares are hitting new 52-week highs today even as the market sinks

Do you own any of these lucky stocks?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

Why this $9.6 billion ASX 200 gold stock is smashing the market today

This gold miner has hit a 52-week high on Wednesday. What's going on?

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
ETFs

4 ASX ETFs that hit new 52-week highs today

These ETFs provide exposure to the gold price and companies in emerging markets.

Read more »

Two happy scientists analysing test results.
52-Week Highs

3 ASX All Ords health care shares that reached 52-week peaks today

These health care companies finished the week on a positive note.

Read more »

group of friends jump on the beach
52-Week Highs

6 ASX 300 shares that hit new 52-week highs today

Here's why these companies stood out in an otherwise lacklustre day of trading.

Read more »