News Corporation (NWSA) reported better-than-expected second-quarter 2010 results on the heels of an improved advertising environment, and significant cost-cutting initiatives taken by management to combat the downturn.

The company’s quarterly earnings topped the Zacks Consensus Estimate of $0.20 per share by 25%. We believe the company will perform better in the coming quarters as the steps taken by the publishing industry in 2009 to combat the economic carnage are expected to start bearing fruit in 2010.

Furthermore, the company’s strong international presence is encouraging and should drive growth. We have an Outperform rating on the stock.Zacks Investment Research