The New York Times Earnings: Here’s Why Investors Like These Results

The New York Times Company (NYSE:NYT) delivered a profit and met Wall Street’s expectations, AND 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 5.33%.

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The New York Times Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20% to $0.04 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 6.7% to $465.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The New York Times Company reported adjusted EPS income of $0.04 per share. By that measure, the company met the mean analyst estimate of $0.04. It missed the average revenue estimate of $470.45 million.

Quoting Management: “Our first-quarter results reflect our continued strides in reshaping The New York Times Company,” said Mark Thompson, president and chief executive officer. “The increase in operating profit, excluding depreciation, amortization and severance, was driven by solid growth in circulation revenues coupled with tightly managed costs, which were lower despite ongoing investment in our high-quality journalism and digital operations.”

Key Stats (on next page)…

Revenue decreased 19.09% from $575.82 million in the previous quarter. EPS decreased 87.5% from $0.32 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 a profit of $0.13 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.49 to a profit of $0.47 over the last ninety days.

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