Wall Street Yawns After News Corp Cuts Financial Guidance

The stock is down 2.2% to $27.60 at mid-day. But that’s the equivalent of a shoulder shrug for News Corp‘s disclosure last night that weaker-than-expected results at Fox, the publishing operations, and Sky Italia mean that this year’s cash flow will grow by a “mid- to high-single-digit” percentage as opposed to the earlier projection for “high-single to low-double-digit” pickup. News Corp shares are still trading near all time highs. And analysts overwhelmingly say that they’re unfazed by the soft ratings at Fox, and the local economic slowdowns affecting News Corp’s Italian satellite service and Australian newspapers. “None of these factors come as a huge shock,” RBC Capital Markets’ David Bank says. “Additionally, none of them are real thesis changers.” Lazard Capital Markets’ Barton Crockett calls them “transitional” issues, adding that “cable network growth will pick up in a couple of quarters, and over-power the Fox and Sky Italia issues.” Wells Fargo’s Marci Ryvicker also observes that “the next positive catalyst is around the corner”: In about a month News Corp will file with the SEC financial details about its plan to create separate companies for its entertainment and publishing assets.

Related: News Corp Fiscal Q2 Earnings Top Wall Street Expectations

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This article was printed from https://deadline.com/2013/02/news-corp-financial-guidance-wall-street-stock-price-424372/