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Factors Likely to Influence NY Times (NYT) in Q3 Earnings
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The New York Times Company (NYT - Free Report) is slated to report third-quarter 2018 results on Nov 1. In the trailing four quarters, it has outperformed the Zacks Consensus Estimate by an average of 27.3%. In the last reported quarter, this diversified media conglomerate delivered a positive earnings surprise of 21.4%. Consequently, investors are keeping their fingers crossed and hoping that the company surpasses earnings estimate even this time.
How are Estimates Faring?
The New York Times Company’s third-quarter earnings are likely to remain flat year over year. This is quite evident from the Zacks Consensus Estimate for the quarter under review, which is pegged at 13 cents in line with the year-ago quarter. We note that the Zacks Consensus Estimate has remained stable in the last 30 days.
The Zacks Consensus Estimate for revenues is $410.3 million, up more than 6% from the year-ago quarter. If all goes well, this may be the fourth straight quarter of top-line beat for the company. We note that total revenue of this NY-based company had increased 1.8% in the last reported quarter.
The New York Times Company Price, Consensus and EPS Surprise
Let’s delve deeper and discuss the factors impacting the results.
Factors Holding Key to NY Times’ Performance
The New York Times Company has been contemplating new avenues of revenue generation in a bid to counter the dwindling print advertising revenues. The New York Times Company has been realigning cost structure and streamlining operations to increase efficiencies. The company is concentrating on online activities, as evident from its pay-and-read model. It had also launched The New York Times Crossword app for Android users, whereby subscribers have access to the daily puzzle and the daily Mini puzzles.
The company notified that the number of paid digital subscribers reached 2,892,000 at the end of second-quarter 2018 — rising 109,000 sequentially and 24% year over year. However, we note that growth in paid digital subscriber slowed in the second quarter when compared with the preceding quarters. The company had added 139,000 and 157,000 subscribers during the first quarter of 2018 and final quarter of 2017, respectively.
Subscription revenue grew 4.2% to $260.6 million, primarily due to increase in the number of subscriptions to the digital-only products. Revenue from digital-only subscriptions products surged 19.6% to $98.7 million. Management now projects total subscription revenue in the third quarter of 2018 to increase in the mid-single digits, while digital-only subscription revenue is likely to rise in the high-teens.
Apart from gearing up to become an optimum destination for news and information, The New York Times Company is also focusing on service journalism with verticals like Cooking, Watching and Well. In this regard, it acquired The Wirecutter and its sister site — The Sweethome — that recommends people about technology gear, home products and other consumer services.
Analysts pointed out that increasing online readership has made the print-advertising model increasingly redundant. We noted that print advertising revenue fell 11.5%, while total advertising revenue declined 9.9% in the second quarter. The New York Times Company had previously highlighted that total advertising revenue in the third quarter is likely to decline in the low-single digits.
What the Zacks Model Unveils?
Our proven model does not conclusively show that The New York Times Company is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
The E.W. Scripps Company (SSP - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #1.
Discovery Communications has an Earnings ESP of +11.90% and a Zacks Rank of #3.
Viacom has an Earnings ESP of +1.17% and a Zacks Rank of #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Factors Likely to Influence NY Times (NYT) in Q3 Earnings
The New York Times Company (NYT - Free Report) is slated to report third-quarter 2018 results on Nov 1. In the trailing four quarters, it has outperformed the Zacks Consensus Estimate by an average of 27.3%. In the last reported quarter, this diversified media conglomerate delivered a positive earnings surprise of 21.4%. Consequently, investors are keeping their fingers crossed and hoping that the company surpasses earnings estimate even this time.
How are Estimates Faring?
The New York Times Company’s third-quarter earnings are likely to remain flat year over year. This is quite evident from the Zacks Consensus Estimate for the quarter under review, which is pegged at 13 cents in line with the year-ago quarter. We note that the Zacks Consensus Estimate has remained stable in the last 30 days.
The Zacks Consensus Estimate for revenues is $410.3 million, up more than 6% from the year-ago quarter. If all goes well, this may be the fourth straight quarter of top-line beat for the company. We note that total revenue of this NY-based company had increased 1.8% in the last reported quarter.
The New York Times Company Price, Consensus and EPS Surprise
The New York Times Company Price, Consensus and EPS Surprise | The New York Times Company Quote
Let’s delve deeper and discuss the factors impacting the results.
Factors Holding Key to NY Times’ Performance
The New York Times Company has been contemplating new avenues of revenue generation in a bid to counter the dwindling print advertising revenues. The New York Times Company has been realigning cost structure and streamlining operations to increase efficiencies. The company is concentrating on online activities, as evident from its pay-and-read model. It had also launched The New York Times Crossword app for Android users, whereby subscribers have access to the daily puzzle and the daily Mini puzzles.
The company notified that the number of paid digital subscribers reached 2,892,000 at the end of second-quarter 2018 — rising 109,000 sequentially and 24% year over year. However, we note that growth in paid digital subscriber slowed in the second quarter when compared with the preceding quarters. The company had added 139,000 and 157,000 subscribers during the first quarter of 2018 and final quarter of 2017, respectively.
Subscription revenue grew 4.2% to $260.6 million, primarily due to increase in the number of subscriptions to the digital-only products. Revenue from digital-only subscriptions products surged 19.6% to $98.7 million. Management now projects total subscription revenue in the third quarter of 2018 to increase in the mid-single digits, while digital-only subscription revenue is likely to rise in the high-teens.
Apart from gearing up to become an optimum destination for news and information, The New York Times Company is also focusing on service journalism with verticals like Cooking, Watching and Well. In this regard, it acquired The Wirecutter and its sister site — The Sweethome — that recommends people about technology gear, home products and other consumer services.
Analysts pointed out that increasing online readership has made the print-advertising model increasingly redundant. We noted that print advertising revenue fell 11.5%, while total advertising revenue declined 9.9% in the second quarter. The New York Times Company had previously highlighted that total advertising revenue in the third quarter is likely to decline in the low-single digits.
What the Zacks Model Unveils?
Our proven model does not conclusively show that The New York Times Company is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The New York Times Company has a Zacks Rank #4 and an Earnings ESP of 0.00%, making surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
The E.W. Scripps Company (SSP - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #1.
Discovery Communications has an Earnings ESP of +11.90% and a Zacks Rank of #3.
Viacom has an Earnings ESP of +1.17% and a Zacks Rank of #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>