Analyst slashes earnings forecast for News Corp.
19 january 2009 | 19:07
A Deutsche Bank analyst slashed his 2009 earnings estimates for News Corp. late Wednesday, projecting a further slide in the advertising and DVD markets.
Analyst Doug Mitchelson now expects News Corp., Rupert Murdoch's media empire, to earn 89 cents per share in 2009, down from a previous forecast of $1.06 cents per share. Analysts polled by Thomson Reuters expect 96 cents per share, on average.
For the company's fiscal second quarter, Mitchelson cut his profit estimate to 21 cents from 29 cents per share.
"While it is tempting to suggest that the worst-case scenario is now fully reflected in our forecast, further risks remain to the extent the economy continues to weaken," Mitchelson said in a client note.
He said the downturn has hurt a wide swath of the company's businesses, from television ads, to DVDs and theater releases, to retail book sales.
News Corp. shares slid as much as 22 cents, or 2.4 percent, to $8.54 on Thursday amid a broader market dip, before recovering in the afternoon.