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.
NY Times (NYT) Q3 Earnings: Will the Stock Disappoint?
Read MoreHide Full Article
The New York Times Company (NYT - Free Report) , a diversified media conglomerate, is slated to report third-quarter 2016 results on Nov 2. The question lingering in investors’ minds now is, whether the company will be able to post a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 20.1%. 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 Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The New York Times Company has an Earnings ESP of -20.00% as the Most Accurate estimate stands at 4 cents, while the Zacks Consensus Estimate is pegged at 5 cents. Moreover, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
The New York Times Company is diversifying its business, adding new revenue streams, strengthening its balance sheet along with restructuring its portfolio. It has 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 declined 11.7% year over year during second-quarter 2016. Print advertising revenue slumped 14.1% in the quarter, while digital advertising revenue dropped 6.8%. Management had earlier projected that total advertising revenue in the third quarter may decline in the mid-single digits compared with the prior-year period.
Twitter, Inc. has an Earnings ESP of +40.00% and a Zacks Rank #3.
Starz has an Earnings ESP of +19.23% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NY Times (NYT) Q3 Earnings: Will the Stock Disappoint?
The New York Times Company (NYT - Free Report) , a diversified media conglomerate, is slated to report third-quarter 2016 results on Nov 2. The question lingering in investors’ minds now is, whether the company will be able to post a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 20.1%. 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 Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The New York Times Company has an Earnings ESP of -20.00% as the Most Accurate estimate stands at 4 cents, while the Zacks Consensus Estimate is pegged at 5 cents. Moreover, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
The New York Times Company is diversifying its business, adding new revenue streams, strengthening its balance sheet along with restructuring its portfolio. It has 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 declined 11.7% year over year during second-quarter 2016. Print advertising revenue slumped 14.1% in the quarter, while digital advertising revenue dropped 6.8%. Management had earlier projected that total advertising revenue in the third quarter may decline in the mid-single digits compared with the prior-year period.
NY TIMES A Price and EPS Surprise
NY TIMES A Price 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:
Nexstar Broadcasting Group, Inc. (NXST - Free Report) has an Earnings ESP of +12.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Twitter, Inc. has an Earnings ESP of +40.00% and a Zacks Rank #3.
Starz has an Earnings ESP of +19.23% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>