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Here's How NY Times (NYT) is Placed Ahead of Q3 Earnings

The New York Times Company's (NYT) third-quarter fiscal 2021 results are likely to reflect its greater emphasis on subscription revenues.

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This story originally appeared on Zacks

The New York Times Company NYT is likely to register an increase in the top line, when it reports third-quarter 2021 numbers on Nov 3, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $498.5 million, indicating an improvement of 17% from the prior-year reported figure.

The bottom line of this diversified media conglomerate is expected to decline year over year. The Zacks Consensus Estimate for third-quarter earnings per share has remained unchanged in the past 30 days at 20 cents. The figure suggests a decline of 9.1% from the year-ago quarter’s reported figure.

The company has a trailing four-quarter earnings surprise of 39%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 33.3%.

- Zacks

Factors to Note

The New York Times Company has been utilizing technological advancements to reach its target audience more effectively. The company’s business model with greater emphasis on subscription revenues bodes well. On its last earnings call, management guided approximately 13-15% increase in total subscription revenues and a surge of approximately 25-30% in digital-only subscription revenues for the third quarter of 2021.

The company has been making concerted efforts to lower dependence on traditional advertising and focus on digitization. It has been diversifying business, adding new revenue streams, and streamlining operations to increase efficiencies. The company has not only been gearing up to become an optimum destination for news and information but also focusing on lifestyle products and services.

Management had guided an increase of 30-35% in total advertising revenues with digital advertising revenues anticipated to surge roughly 40-45% for the third quarter. However, management projected an 18-20% jump in adjusted operating costs for the quarter under review, as the company continues to invest in the drivers of digital subscription growth. This is likely to get reflected in the to-be-reported quarter’s bottom line.

The New York Times Company Price, Consensus and EPS Surprise

The New York Times Company Price, Consensus and EPS Surprise

The New York Times Company price-consensus-eps-surprise-chart | The New York Times Company Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for The New York Times Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Although The New York Times Company carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

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

The Walt Disney Company DIS has an Earnings ESP of +9.81% and a Zacks Rank #3.

Discovery, Inc. DISCA has an Earnings ESP of +42.50% and a Zacks Rank of #3.

Gray Television, Inc. GTN has an Earnings ESP of +3.03% and a Zacks Rank of #3.



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The New York Times Company (NYT): Free Stock Analysis Report

 

The Walt Disney Company (DIS): Free Stock Analysis Report

 

Discovery, Inc. (DISCA): Free Stock Analysis Report

 

Gray Television, Inc. (GTN): Free Stock Analysis Report

 

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