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NY Times (NYT) to Post Q1 Earnings: Key Factors to Note

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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 first-quarter 2022 numbers on May 4, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $543.3 million, indicating an improvement of 14.9% from the prior-year reported figure.

The bottom line of this diversified media conglomerate is expected to decline year over year. The Zacks Consensus Estimate for first-quarter earnings per share of 19 cents has remained unchanged in the past 30 days. The figure suggests a decline of 26.9% from the year-ago quarter’s reported figure.

The company has a trailing four-quarter earnings surprise of 36.1%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 22.9%.

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 bode well. We believe that the recent acquisition of digital subscription-based sports media business, The Athletic, is likely to have been accretive to the company’s revenues. The buyout has not only helped The New York Times Company to expand the addressable market of potential subscribers but also diversify offerings.

On its last earnings call, management guided an increase of about 9-11% year over year in total subscription revenues and a rise of approximately 18-21% in digital-only subscription revenues for first-quarter 2022. Including The Athletic, The New York Times Company projected 11-15% jump in total subscription revenues and 23-28% surge in digital-only subscription revenues.

The company has been making concerted efforts to lower dependence on traditional advertising and focusing 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 also focusing on lifestyle products and services.

The New York Times Company had guided 16-20% increase in total advertising revenues and 18-22% rise in digital advertising revenues for first-quarter 2022. Including The Athletic, total advertising revenues are projected to rise 17-21% and digital advertising revenues are expected to improve 20-24%.

However, any deleverage in expenses related to product development, sales and marketing as well general and administrative might have weighed on margins. The company had earlier forecast an increase of approximately 13-15% in adjusted operating costs, as it continues to invest in the drivers of digital subscription growth. Including The Athletic, management guided 18-22% increase in adjusted operating costs.

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. You can see the complete list of today’s Zacks #1 Rank stocks here.

The New York Times Company has a Zacks Rank #4 (Sell) and 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:

The Walt Disney Company (DIS - Free Report) currently has an Earnings ESP of +3.87% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.20 suggests an increase of 51.9% from the year-ago reported number.

Disney’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $20.25 billion, which suggests an increase of 29.7% from the prior-year quarter. DIS has a trailing four-quarter earnings surprise of 67.8%, on average.

Charter Communications (CHTR - Free Report) currently has an Earnings ESP of +3.99% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $6.53 suggests an improvement of 58.9% from the year-ago quarter.

Charter Communications’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.21 billion, which indicates an improvement of 5.5% from the figure reported in the prior-year quarter. CHTR has a trailing four-quarter earnings surprise of 12%, on average.

Perion Network (PERI - Free Report) currently has an Earnings ESP of +48.72% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 20 cents suggests growth of 122.2% from the year-ago quarter’s reported figure.

Perion Network’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $124.7 million, indicating an increase of 38.8% from the figure reported in the year-ago quarter. PERI has a trailing four-quarter earnings surprise of 68.5%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.