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NY Times (NYT) Q2 Earnings: What's in Store for the Stock?

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The New York Times Company (NYT - Free Report) , a diversified media conglomerate, is slated to report second-quarter 2016 results on Jul 28. The question lingering in investors’ minds now is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. The company has surpassed earnings expectations for seven straight quarters now. Also, the average positive surprise over the trailing four quarters comes to 26.7%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that The New York Times Company is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The New York Times Company has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 12 cents. The New York Times Company’s Zacks Rank #2 (Buy) increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.

Factors Influencing this Quarter

The New York Times Company is diversifying its business, adding new revenue streams, strengthening its balance sheet and restructuring its portfolio. It had offloaded assets in order to re-focus on its core newspapers and pay more attention to its online activities. We believe these moves will have a favorable impact on the quarter to be reported.

However, advertising revenue remains an area of concern for the company. Total advertising revenue fell 6.8% year over year during the first quarter of 2016. Print advertising revenue declined 9% in the quarter, while digital advertising revenue dropped 1.3%. Management had earlier projected that total advertising revenue in the second quarter may decline at a rate equivalent to that experienced in the first quarter.

NY TIMES A Price, Consensus and EPS Surprise

NY TIMES A Price, Consensus and EPS Surprise | NY TIMES A Quote

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

CBS Corporation (CBS - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2.

Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).

Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.

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CBS Corporation (CBS) - free report >>

Expedia Group, Inc. (EXPE) - free report >>

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