Will News Corp’s Stock Continue Its Steady Ascent?

December 20, 2012

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for News Corp is normal. It should come as no surprise that this company manages debt well. The balance sheet for News Corp could use a little help, but it’s in fine condition.

	Debt-To-Equity	Cash	Long-Term Debt
NWSA	.61	$12.01 Billion	$16.46 Billion
DIS	.34	$3.39 Billion	$14.31 Billion
TWX	.66	$3.19 Billion	$19.88 Billion

T = Technicals on the Stock Chart Are Strong

News Corp has enjoyed a great run over the past three years. It has outperformed The Walt Disney Company (NYSE:DIS) and Time Warner Inc. (NYSE:TWX) during that timeframe.

	1 Month	Year-To-Date	1 Year	3 Year
NWSA	5.78%	43.23%	52.55%	95.52%
DIS	6.98%	36.68%	47.50%	64.90%
TWX	6.20%	35.85%	46.38%	76.46%

At $25.49, News Corp is currently trading above all its averages.

50-Day SMA	24.41
100-Day SMA	24.14
200-Day SMA	22.12

E = Earnings Have Been Inconsistent

Earnings have been difficult to predict while revenue has shown slow but steady growth.

	2008	2009	2010	2011	2012
Revenue ($)in billions	33.00	30.42	32.78	33.40	33.71
Diluted EPS ($)	1.81	-1.29	.97	1.04	.47

Looking at the last quarter on a YoY basis, we see an increase in revenue and earnings, which is a great sign.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	7.96	8.96	8.40	8.37	8.14
Diluted EPS ($)	.28	.42	.38	-.61	.94

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