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NY Times (NYT) Gears Up for Q2 Earnings: What to Expect?

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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 2022 numbers on Aug 3, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $552.8 million, indicating an improvement of 10.9% 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 second-quarter earnings per share of 20 cents has been stable in the past 30 days. The figure suggests a decline of 44.4% from the year-ago quarter’s reported figure.

The company has a trailing four-quarter earnings surprise of 17.8%, on average. In the last reported quarter, the company’s bottom line came in line with the Zacks Consensus Estimate.

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 bodes well. We believe that the acquisition of a 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 12-14% year over year in total subscription revenues and a rise of approximately 23-27% in digital-only subscription revenues for second-quarter 2022. Management projected a 7-9% increase in total subscription revenues at The New York Times Group and a 4-6 percentage points contribution from The Athletic to consolidated results. It also guided a 16-18% increase in digital-only subscription revenues at The New York Times Group segment and a 7-9 percentage points contribution from The Athletic.

The Zacks Consensus Estimate for second-quarter total subscription revenues and digital-only subscription revenues is currently pegged at $385 million and $238 million, compared with $339.2 million and $190.1 million, respectively, reported in the year-ago period.

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

The New York Times Company had guided a low-single-digit increase in digital advertising revenues and mid-single-digit growth in total advertising revenues for the second quarter. The Zacks Consensus Estimate for second-quarter digital advertising revenues and total advertising revenues is currently pegged at $73 million and $118 million, compared with $71 million and $112.8 million, respectively, reported in the year-ago period.

However, any deleverage in expenses related to product development, sales and marketing, as well as general and administrative, might have weighed on margins. The company had earlier forecast an increase of approximately 18-22% in adjusted operating costs as it 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. 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:

Intuit (INTU - Free Report) currently has an Earnings ESP of +1.92% and a Zacks Rank #2. The company is likely to register bottom-line decline when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 99 cents suggests a decline of 49.8% from the year-ago quarter.

Intuit’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.35 billion, which indicates a decline of 8.1% from the figure reported in the prior-year quarter. INTU has a trailing four-quarter earnings surprise of 16.8%, on average.

Atlassian Corporation (TEAM - Free Report) currently has an Earnings ESP of +1.92% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 26 cents suggests an increase of 8.3% from the year-ago reported number.

Atlassian Corporation’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $717.8 million, which suggests growth of 28.3% from the prior-year quarter. TEAM has a trailing four-quarter earnings surprise of 3.6%, on average.

Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +6.06% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 33 cents suggests a decline from 52 cents reported in the year-ago quarter.

Ollie's Bargain’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $457.5 million, indicating an increase of 10% from the figure reported in the year-ago quarter.

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