New York Times Co. Earnings Cheat Sheet: Swing to a Profit, Beating Estimates

New York Times Co. (NYSE:NYT) climbed to a profit in the third quarter and beat Wall Street’s expectations in the process. The New York Times Company is a media company that currently includes newspapers, Internet businesses, investments in paper mills, and other investments.

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New York Times Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $15.7 million (10 cents per diluted share) in the quarter. New York Times Co. had a net loss of $4.3 million or a loss 3 cents per share in the year earlier quarter.

Revenue: Fell 3.1% to $537.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NYT reported adjusted net income of 5 cents per share. By that measure, the company beat the mean estimate of 3 cents per share. Analysts were expecting revenue of $540.9 million.

Quoting Management: “This quarter we continued to execute on our strategy to transform our business, said Janet L. Robinson, president and chief executive officer, The New York Times Company. “We made significant progress in developing a robust digital subscription revenue stream, reduced our operating costs, meaningfully improved our liquidity through the early repayment of high-interest debt and tripled our initial investment on the sale of a portion of our stake in Fenway Sports Group. And despite a challenging advertising environment, our operating profit grew reflecting our strong cost performance and growth in circulation revenues, which rose three percent.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 2.2% to $576.7 million in the second quarter. The figure fell 3.6% in the first quarter from the year earlier and dropped 2.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 12 cents versus a mean estimate of net income of 10 cents per share.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 44 cents per share to 41 cents. For the fiscal year, the average estimate has moved down from 62 cents a share to 57 cents over the last thirty days.

Competitors to Watch: Gannett Co., Inc. (NYSE:GCI), The McClatchy Company (NYSE:MNI), News Corporation (NASDAQ:NWSA), Media General, Inc. (NYSE:MEG), GateHouse Media, Inc. (GHSE), Lee Enterprises, Inc. (NYSE:LEE), The E.W. Scripps Company (NYSE:SSP), A. H. Belo Corporation (NYSE:AHC), Daily Journal Corporation (NASDAQ:DJCO), and Pearson PLC (NYSE:PSO).

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(Source: Xignite Financials)