The New York Times Earnings: Here’s Why Investors are Buying Shares Now

The New York Times Company (NYSE:NYT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2%.

The New York Times Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.27% to $0.14 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 5.79% to $485.36 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The New York Times Company reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.12. It missed the average revenue estimate of $487.43 million.

Quoting Management: “Our improved results in the second quarter were an organization-wide effort – with contributions from more favorable revenue trends and strong cost performance,” said Mark Thompson, president and chief executive officer. “The increase in operating profit reflects the ongoing evolution of our digital subscription initiatives on the circulation side, the moderation of revenue declines on the advertising side and the continued focus on managing costs.”

Key Stats (on next page)…

Revenue increased 4.17% from $465.93 million in the previous quarter. EPS increased 250% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from $0 to a loss $0.01. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)