News Corporation

Significant revenue increase in Q2 FY 19: News Corporation (ASX: NWS) is a diversified media and information services company which operates globally. It creates and distributes authoritative and engaging contents. The company operates in a range of businesses including media, including news and information services, book publishing, digital real estate services etc.

The company has recently announced to pay an ordinary dividend of US$0.10 on 17 April 2019. The Ex-date for the dividend will be 12 March 2019, and the record date will be 13 March 2019.


Consolidated Statements of Operations (Source: Company Reports)

The reported total revenues of the company stood at $2.63 billion in the fiscal 2019 second quarter, representing an increase of 21% compared to $2.18 billion over the prior year period influenced by the consolidation of Foxtel as well as strength with respect to Book Publishing and Digital Real Estate Service Segment.

The net income was reported to be $119 million for the reported period as comparing to a net loss of $66 million in the prior year corresponding period. This reflects the absence of the $174 million negative impacts of the U.S. Tax Cuts and Jobs Act recognised in the second quarter of FY 2018 primarily, further with higher total EBITDA from the segments.

The current ratio and the pre-tax ROA for the company stood at 1.19x and 1.1% in the fiscal 2019 second quarter, compared to the previous corresponding period of 1.64x and 1.2%, a decline by 27.2% and 10 bps respectively.

However, the stock has generated negative returns of 9.18% and 7.53% over the last six months and three months period respectively. With the aforesaid facts and volatility in the stock performance over the past few months, we advise to investors that they should wait and watch the stock at the current market price of $18.240 per share for a better entry level (up 2.472% on 18 February 2019).
 

CSL Limited

Revenues from continuing operations up 8.6%: CSL Limited (ASX: CSL) is under the health care segment, and the company is engaged into development, research, manufacturing, and marketing of cell culture media, human plasma fractions, and pharmaceutical and diagnostic products. Recently, the group has presented its business prospects at the JP Morgan Healthcare conference and highlighted about business objective for the future. It was presented by Mr. Paul Perreault – the Managing Director and CEO. As per the presentation, For the half-year ended 31 December 2018, the total revenue for the Group was US$4.5 billion, an increase of 9% (11% at constant currency) when compared to the prior comparable period. Reported net profit after tax was US$1.19 billion, up 7% (10% at constant currency) when compared to the prior comparative period. Based on the performance, the Board of Directors declaredto pay an ordinary fully-paid dividend of US$0.850 on 12 April 2019. The Ex-date for the dividend will be 13 March 2019, and the record date will be 14 March 2019. Among the key ratios, the ROE and Pre-Tax ROA stood at 26.0% and 13.1% for 31 December 2018, compared to the prior corresponding period, down by 500 bps and 150 bps.
 

Consolidated Statement of Comprehensive Income (Source: Company Reports)

Moreover, the global demand for immunoglobulin has been strong on the back of increased usage for chronic therapies, including Primary Immune Deficiency and Chronic Inflammatory Demyelinating Polyneuropathy, together with increased disease awareness and diagnosis.Also contributing to growth has been the collective group of secondary immune deficiencies, which are expanding in utilisation.
What to Expect from CSL Going Forward: The company maintains a strategy to develop & deliver innovative medicines that save life, protects public health and help people with life-threatening medical conditions. As per the previous guidance, CSL’s net profit after tax for FY19 would be in the range of approximately $1,880 to $1,950 million at constant currency, however, now the company anticipates the profit figure to be around the upper end of this range, based on the exchange rates for FY18.
 
Meanwhile, the stock has maintained a downward performance over the short-term with its negative returns of 13.79% and 6.52% over the six months and one-month period respectively. By considering the fact that the stock has priced in all the positive catalyst and is trading at a premium, thus, we have wait and watch view on the stock at the current market price of $187.040 per share (up 1.103% on 18 February 2019).
 

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