News Corp (NYSE:NWS) Soars on Network Performance, Strong Ad Revenue

News Corp (NYSE:NWS) easily beat revenue results from last year in the same quarter, generating $8.76 billion, up from $6.84 billion the year before. Earnings came in at $29 cents a share, beating analysts' estimates of 28 cents a share. Last year earnings were 25 cents a share in the same quarter.

The strong performance of the networks of News Corp., along with its ad revenue (especially auto), led the company's quarterly results.

Guidance was in line with its prior estimate of double digit income growth for 2011.

Also good news for the company and shareholders is its shrinking reliance on ads as its key earnings metric. Recent concerns over rising commodity prices in the auto sector reveal the fragility of the ad market in that regard. Instead, other revenue sources, specifically retransmission fees from Fox broadcast channel and cable channels, are helping drive growth at the media company.

The cable assets of the network continue to lead the way, with ad revenue increasing 17 percent and affiliate fees growing by 11 percent. Cable networks generate about 60 percent of the operating income of News Corp.

News Corp. closed Wednesday at $17.51, gaining $0.42, or 2.46 percent.