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New York Times (NYT) to Post Q4 Earnings: What's in the Cards?

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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 fourth-quarter 2023 numbers on Feb 7 before market open. The Zacks Consensus Estimate for revenues is pegged at $680.9 million, indicating an improvement of 2% from the prior-year reported figure.

The company is expected to observe a year-over-year increase in its bottom line. The Zacks Consensus Estimate for fourth-quarter earnings per share has been stable at 60 cents in the past 30 days, suggesting an improvement of 1.7% from the year-ago period.

This diversified media company has a trailing four-quarter earnings surprise of 40.4%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 27.6%.

Factors to Note

The New York Times Company has undertaken significant initiatives to diversify its business and adapt to the changing media landscape. These efforts include the introduction of new revenue streams, cost structure realignment and operational streamlining for enhanced efficiency. With a growing emphasis on subscription revenues, the company's business model appears well-positioned for continued growth.

The integration of technological advancements has allowed The New York Times Company to engage its target audience more effectively. Strategic acquisitions, such as Wirecutter, a product review website, and The Athletic, a digital subscription-based sports media business, have expanded the company's addressable market.

On its last earnings call, management provided guidance for the fourth quarter of 2023, projecting an approximate year-over-year increase of 2-5% in total subscription revenues and a surge of around 6-9% in digital-only subscription revenues.

Furthermore, the company has been actively reducing its reliance on traditional advertising by focusing on digitization. It's not only striving to become a leading source of news and information but also branching out into lifestyle products and services.

Regarding advertising revenues in the fourth quarter, The New York Times Company anticipates a mid-single-digit decline to a low-single-digit increase in total advertising revenues. Also, any deleverage in expenses related to product development, sales and marketing, and general and administrative functions could potentially impact margins. The company's forecast includes an estimated flat to a 2% increase in adjusted operating costs for the fourth 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 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.

The New York Times Company has a Zacks Rank #1 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:

Twilio (TWLO - Free Report) carries a Zacks Rank #2 and has an Earnings ESP of +31.37%. The company is scheduled to report fourth-quarter 2023 results on Feb 14. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 157.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Twilio’s fourth-quarter earnings stands at 57 cents per share, indicating a year-over-year improvement of 159.1%. It is estimated to report revenues of $1.04 billion, which suggests an increase of approximately 1.5% from the year-ago quarter.

NVIDIA (NVDA - Free Report) is slated to report fourth-quarter fiscal 2024 results on Feb 21. The company has a Zacks Rank #2 and an Earnings ESP of +3.68% at present. NVIDIA’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 19%.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.49 per share, suggesting an increase of 410.2% from the year-ago quarter’s earnings of 88 cents. NVIDIA’s quarterly revenues are estimated to improve marginally to $20.1 billion from $6.05 billion in the year-ago quarter.

Vertiv (VRT - Free Report) carries a Zacks Rank #2 and has an Earnings ESP of +2.44%. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 27.8%.

The Zacks Consensus Estimate for Vertiv’s fourth-quarter earnings is pegged at 53 cents per share, indicating a year-over-year increase of 89.3%. The consensus mark for revenues stands at $1.89 billion, calling for a year-over-year rise of 14.1%.

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

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