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NY Times (NYT) Queued for Q2 Earnings: Factors to Consider

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The New York Times Company (NYT - Free Report) is likely to register an increase in the top line, when it reports second-quarter 2021 numbers on Aug 4, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $489.8 million, indicating an improvement of 21.3% from the prior-year reported figure.

The bottom line of this diversified media conglomerate is expected to increase year over year. The Zacks Consensus Estimate for earnings for the quarter under review has been stable at 27 cents over the past 30 days. The figure suggests a sharp increase from 18 cents reported in the year-ago quarter.

The company has a trailing four-quarter earnings surprise of 95.6%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 73.3%.

Factors to Note

The New York Times Company has been utilizing technological advancements to reach its target audience more effectively. The company’s business model with greater emphasis on subscription revenues positions it well to mitigate the impact of the ongoing pandemic to an extent. On its last earnings call, management guided about 15% increase in total subscription revenues and a surge of approximately 30% in digital-only subscription revenues for the second quarter of 2021.

The company has been making concerted efforts to lower dependency on traditional advertising and focus on digitization. It has been diversifying business, adding new revenue streams, and streamlining operations to increase efficiencies. The company has not only been gearing up to become an optimum destination for news and information but has also been focusing on lifestyle products and services.

Management had guided an increase of 55-60% in total advertising revenues with digital advertising revenues anticipated to surge roughly 70-75% primarily as a result of the impact of the comparison to soft revenues in the year-ago period on account of lower advertiser spending due to the onset of the pandemic.

However, management projected mid-to-high-teens jump in adjusted operating costs, as the company continues to invest in the drivers of digital subscription growth.

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 price-consensus-eps-surprise-chart | The New York Times Company Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for The New York Times Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Although The New York Times Company carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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:

Rackspace Technology (RXT - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty Broadband Corporation (LBRDK - Free Report) has an Earnings ESP of +18.06% and a Zacks Rank of #3.

TechTarget (TTGT - Free Report) has an Earnings ESP of +0.21% and a Zacks Rank of #3.