Can NWS sustain its earnings growth beyond 2025?

**News Corp. (NWS) has a strong foundation for sustaining earnings growth beyond 2025**, based on several key factors:

1. **Diversified Revenue Streams**: News Corp.'s revenue growth is not solely dependent on any one segment. For instance, while the News Media segment faced challenges, other segments such as Digital Real Estate Services and Dow Jones showed strong performance. This diversification reduces the risk of earnings volatility and positions the company to capitalize on growth opportunities across different markets.
2. **Strategic Initiatives**: The company has been undertaking a strategic review of its portfolio and has made significant overtures, such as the potential interest in Foxtel. These initiatives suggest a proactive approach to enhancing the portfolio and unlocking value from its assets, which could drive future earnings growth.
3. **Digital Transformation**: News Corp. has seen strong growth in digital real estate services, with revenues rising 21% and segment EBITDA surging 25%. The continued investment in digital technologies and products is likely to fuel further growth in this area, which is crucial for sustaining long-term earnings growth.
4. **International Expansion**: The company has been expanding its presence internationally, with significant reach in various markets including Asia and Europe. This global footprint positions News Corp. well to benefit from growing media consumption patterns and increasing demand for content and services across borders.
5. **Financial Resilience**: News Corp. has demonstrated resilience in its financial performance, as evidenced by a 54.64% year-over-year growth in net income and a 4.82% increase in total revenue. The company's ability to generate strong earnings and maintain revenue growth is a positive indicator for its future prospects.
6. **Analyst Confidence**: Analysts have projected future earnings growth, with expectations of increased revenues and EPS. The consensus among analysts for the upcoming quarter is for positive earnings surprises, which could be a sign of sustained growth potential.
7. **Innovation and Product Development**: News Corp. has been innovating and introducing new products, such as carbon credit indices and advanced analytics. These innovations are likely to enhance customer engagement and loyalty, contributing to sustained growth.

In conclusion, while there are challenges, particularly in the News Media segment, News Corp.'s diversified revenue streams, strategic initiatives, digital transformation, international expansion, financial resilience, analyst confidence, and innovation position it well for sustaining earnings growth beyond 2025.