We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors to Know Ahead of The New York Times (NYT) Q3 Earnings
Read MoreHide Full Article
The New York Times Company (NYT - Free Report) is likely to register an increase in the top line when it reports third-quarter 2022 numbers on Nov 2 before market open. The Zacks Consensus Estimate for revenues is pegged at $547.1 million, indicating an improvement of 7.5% 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 third-quarter earnings per share of 15 cents has been stable in the past 30 days. The figure suggests a decline of 34.8% from the year-ago quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 14.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 20%.
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 a 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 expand the addressable market of potential subscribers but also diversify offerings.
On its last earnings call, management guided a year-over-year increase of about 11-13% in total subscription revenues and a rise of approximately 21-25% in digital-only subscription revenues for the third quarter of 2022. Management projected a 5-7% increase in total subscription revenues at The New York Times Group and a 5-7 percentage points contribution from The Athletic to consolidated results. It also guided a 10-14% increase in digital-only subscription revenues at The New York Times Group segment and a 10-12 percentage points contribution from The Athletic.
The Zacks Consensus Estimate for total third-quarter subscription revenues and digital-only subscription revenues is currently pegged at $385 million and $245 million compared with the $342.6 million and $198.6 million, respectively, reported in the year-ago period.
The company has been making concerted efforts to lower its dependence on traditional advertising and focus on digitization. It has been diversifying the 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.
However, the current geopolitical and macroeconomic environment and a reduction in marketer spend on advertising adjacent to news coverage have been weighing on digital advertising revenues. For the third quarter, The New York Times Company projected flat to a low-single-digit decline in digital advertising revenues and total advertising revenues.
It envisioned total advertising revenues to decline in the low-to-mid-single digits and digital advertising revenues to decline 4-8% at The New York Times Group.
Additionally, 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 9-13% 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
Our proven model does not conclusively predict an earnings beat for The New York Times Company this time. 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. However, 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 #3 but 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 the 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:
Builders FirstSource (BLDR - Free Report) currently has an Earnings ESP of +3.44% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.53 suggests an increase of 4.1% from the year-ago reported number.
Builders FirstSource’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.22 billion, which suggests a decrease of 5.3% from the prior-year quarter. BLDR has a trailing four-quarter earnings surprise of 88.6%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.15 suggests an increase of 6.1% from the year-ago quarter.
Costco's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $54.98 billion, indicating an increase of 9.2% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +9.20% and a Zacks Rank #2. The company is likely to register a decline in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.10 suggests a decline from the $1.93 reported in the year-ago quarter.
Foot Locker's top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.10 billion, which indicates a decline of 3.9% from the figure reported in the prior-year quarter. Foot Locker has a trailing four-quarter earnings surprise of 28.6%, on average.
Image: Bigstock
Factors to Know Ahead of The New York Times (NYT) Q3 Earnings
The New York Times Company (NYT - Free Report) is likely to register an increase in the top line when it reports third-quarter 2022 numbers on Nov 2 before market open. The Zacks Consensus Estimate for revenues is pegged at $547.1 million, indicating an improvement of 7.5% 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 third-quarter earnings per share of 15 cents has been stable in the past 30 days. The figure suggests a decline of 34.8% from the year-ago quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 14.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 20%.
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 a 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 expand the addressable market of potential subscribers but also diversify offerings.
On its last earnings call, management guided a year-over-year increase of about 11-13% in total subscription revenues and a rise of approximately 21-25% in digital-only subscription revenues for the third quarter of 2022. Management projected a 5-7% increase in total subscription revenues at The New York Times Group and a 5-7 percentage points contribution from The Athletic to consolidated results. It also guided a 10-14% increase in digital-only subscription revenues at The New York Times Group segment and a 10-12 percentage points contribution from The Athletic.
The Zacks Consensus Estimate for total third-quarter subscription revenues and digital-only subscription revenues is currently pegged at $385 million and $245 million compared with the $342.6 million and $198.6 million, respectively, reported in the year-ago period.
The company has been making concerted efforts to lower its dependence on traditional advertising and focus on digitization. It has been diversifying the 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.
However, the current geopolitical and macroeconomic environment and a reduction in marketer spend on advertising adjacent to news coverage have been weighing on digital advertising revenues. For the third quarter, The New York Times Company projected flat to a low-single-digit decline in digital advertising revenues and total advertising revenues.
It envisioned total advertising revenues to decline in the low-to-mid-single digits and digital advertising revenues to decline 4-8% at The New York Times Group.
Additionally, 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 9-13% 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-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. 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. However, 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 #3 but 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 the 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:
Builders FirstSource (BLDR - Free Report) currently has an Earnings ESP of +3.44% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.53 suggests an increase of 4.1% from the year-ago reported number.
Builders FirstSource’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.22 billion, which suggests a decrease of 5.3% from the prior-year quarter. BLDR has a trailing four-quarter earnings surprise of 88.6%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.15 suggests an increase of 6.1% from the year-ago quarter.
Costco's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $54.98 billion, indicating an increase of 9.2% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +9.20% and a Zacks Rank #2. The company is likely to register a decline in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.10 suggests a decline from the $1.93 reported in the year-ago quarter.
Foot Locker's top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.10 billion, which indicates a decline of 3.9% from the figure reported in the prior-year quarter. Foot Locker has a trailing four-quarter earnings surprise of 28.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.