News Corp stock rises on Q3 earnings beat

The Yahoo Finance Live team discusses the rise of News Corp stock on Q3 earnings beat after using cost-cutting measures.

Video transcript

BRAD SMITH: Now let's also talk about News Corp this morning. News Corp getting a boost after the company used cost-cutting measures to lead to a profit beat for the third quarter. And so our total subscribers for its consumer products crossed 5 million there for News Corp. You're taking a look at shares up by about 7.7% here this morning.

JULIE HYMAN: Yeah, I'm interested when I talk about this company to think about the company that was formerly part of it. I'm talking about the company now known as Fox Corp, right, which has some different issues to deal with here.

This company has Dow Jones. It has book publishing. It has news media, digital real estate. So it's a conglomerate on more of the text side of the business more or less. And if you look across the different lines of business here, there are some clear areas of strength versus weakness.

Subscription video service revenue was down. Digital real estate service revenue was down. Dow Jones revenue was up by 8.6%. So you see the kind of differences in the different businesses. So it still has sort of a diversified enough business that there is some give and take here, but without the Fox Corp business that was once a part of.

BRAD SMITH: Yeah, it's also really interesting on the net income perspective too, where the net income was $59 million. You compare that to $104 million in the prior year, so essentially, slashed in half there. And it's a wonder of whether this was just kind of a beat on lowered expectations already for the business. And I mean, we're kind of seeing that in the stock price anyway in tandem with a few of the other bright spots.

JULIE HYMAN: Yeah, I mean, they have been cutting costs, like everybody has been cutting costs. And they are affected by the advertising business. So you know, again, that kind of push and pull, if you will, in different parts.