News Corp Beats Q4 Earnings Expectations, Misses On Sales, Stock Slides After Hours

News Corporation NWS shares are trading lower after-hours Thursday as the company reported fourth-quarter earnings. Here's what happened.

What To Know: The company reported quarterly earnings of 14 cents per share which beat the analyst consensus estimate of nine cents, a 62.16% decrease over earnings of 37 cents per share from the same period last year. The company reported quarterly sales of $2.43 billion, which missed the analyst consensus estimate of $2.48 billion, a 9.01% decrease over sales of $2.67 billion in the same period last year.

Digital revenues accounted for over 50% of total revenues for the full year. The figure is cited as a significant inflection point in the company's progression.

Free cash flow in the fiscal year ended June 30, 2023, was $593 million compared to $855 million in the prior year. Free cash flow available to News Corporation in the fiscal year ended June 30, 2023, was $450 million compared to $663 million in the prior year. Lower cash generated by operating activities was named as the cause.

"News Corp's Fiscal 2023 results highlighted the durability and depth of our revenue streams and the impact of stringent cost controls as we navigated challenging macro conditions, supply chain pressures and currency headwinds. We achieved full year Fiscal 2023 revenues of $9.9 billion and profits of over $1.4 billion - the second highest profitability ever recorded by the company," said CEO Robert Thomson.

"Our results showed marked improvement in the second half, so with inflation abating, interest rates plateauing and incipient signs of stability in the housing market, we have sound reasons for optimism about the coming quarters."

Related Link: The Apes Just Resurrected WeWork Stock: 'It Will Go To The Moon'

NWS Price Action: Shares of NWS were down 1.59% at $20.38 in the after-hours session at the time of publication, according to Benzinga Pro. 

Image by Karolina Grabowska from Pixabay