The News Corp Inc. (ASX: NWS) share price has hit a new 52-week high for the second day in the row after a strong full-year earnings result boosted investors' confidence.
What were the highlights from News Corp's earnings?
News Corp reported a 12% year-on-year (YoY) increase in revenue to $10.07 billion, while net profit climbed to $228 million.
While the company's profit margins aren't exactly stellar, the return to profitability after booking a $1.44 billion loss in FY18 boosted investors' faith in the stock.
News Corp reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.24 billion, up from $1.07 billion in FY18, while adjusted earnings per share (EPS) edged 2 cents per share (cps) higher to 46 cps.
In terms of its quarterly performance, News Corp posted total revenues of $2.47 billion, down 8% YoY, while quarterly EBITDA fell 14% to $269 million.
However, while the headline numbers were good for News Corp, the Aussie media group did report softer digital real estate services conditions in its realestate.com.au platform.
Also adding to the company's headaches was the continued downward trend in print media, with print advertising revenue and subscription numbers falling across its major outlets, despite an uptick in digital subscriptions.
Why the News Corp share price hit a 52-week high
While Friday's numbers appear solid, I think the News Corp share price has been boosted largely due to overly pessimistic forecasts for the Aussie media group.
The News Corp share price plummeted in 2H 2018, along with most of the S&P/ASX 200 (INDEXASX: XJO) index and closed the year out at just $16.27 per share.
However, a solid earnings result in February and now backing that up in August has seen the News Corp share price surge to new 52-week highs on both Monday and in early trade this morning.
News Corp shareholders appear to have confidence in the management team to deliver on its digital reforms, such as introducing the Kayo sports platform to its newly merged Fox Sports and Foxtel businesses.
While I'm not personally looking to invest in media companies at the moment, the News Corp share price looks set to be surging higher and could continue to climb in the second half of the year.
