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New York Times (NYT) Lined Up for Q2 Earnings: What to Expect?
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As The New York Times Company (NYT - Free Report) prepares to release its second-quarter 2024 numbers on Aug 7 before the opening bell, the focus will be on subscription growth, advertising revenue trends, cost management and the impact of new strategic initiatives.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $622.9 million, which indicates an increase of 5.4% from the prior-year reported figure.
The company is also expected to see a year-over-year improvement in the bottom line. The Zacks Consensus Estimate for earnings per share has remained stable at 40 cents over the past 30 days, suggesting a 5.3% increase from the year-ago period.
This diversified media company has a trailing four-quarter earnings surprise of 49.4%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 72.2%.
Factors to Note
The New York Times Company's top line is likely to have benefited from growth in subscriptions, driven by high-quality content and an effective digital strategy. Additionally, effective content monetization strategies and efficient cost management practices are likely to have enhanced profitability.
The New York Times has been successful in converting its readers into paying subscribers, thanks to high-quality journalism and strategic investments in digital content. The integration of technological advancements has allowed the company to engage its target audience more effectively.
On its last earnings call, management guided a year-over-year increase of approximately 6-8% in total subscription revenues for the second quarter, with digital-only subscription revenues expected to rise around 11-14%. The Zacks Consensus Estimate for subscription revenues is currently pegged at $438.6 million, which indicates growth of 7.1%. The consensus mark for digital-only subscription revenues stands at $303.3 million, which suggests an increase of 12.4%.
The continued expansion of The New York Times' subscriber base is pivotal. The consensus estimate suggests that the digital-only subscriber count will reach 10.1 million at the end of the second quarter.
As the subscriber base increases, so does the company's influence and market standing, making it an appealing platform for advertisers eager to connect with a wider and more engaged audience. Strategic acquisitions, such as Wirecutter, a product review website, and The Athletic, a digital subscription-based sports media business, have expanded the company's addressable market.
Moreover, The New York Times has been actively reducing its dependence on traditional advertising by prioritizing digitization. Management anticipates high-single-digit growth in digital advertising revenues and aims to solidify its position as a premier source of news and information while diversifying into lifestyle products such as Games, Shopping, Cooking and Sports. The Zacks Consensus Estimate for digital advertising revenues is currently pegged at $79.7 million, which indicates growth of 7.9%.
However, there are concerns regarding softness in print advertising. Additionally, any increase in expenses related to product development, sales and marketing, and general and administrative functions could potentially impact margins. The company's forecast includes an estimated 4-5% increase in adjusted operating costs for the quarter under review.
The New York Times Company Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for The New York Times Company this time. 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. However, that’s not the case here.
The New York Times Company has a Zacks Rank #3 but 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 the 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:
DigitalOcean Holdings (DOCN - Free Report) has an Earnings ESP of +2.19% and currently sports a Zacks Rank of 1. DOCN's top line is anticipated to advance year over year when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $188.6 million, which suggests an 11.1% increase from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a decline in the bottom line. The consensus estimate for DigitalOcean’s second-quarter earnings is pegged at 39 cents a share, which indicates a fall of 11.4% from the year-ago quarter. DOCN has a trailing four-quarter earnings surprise of 16.1%, on average.
Fortinet, Inc. (FTNT - Free Report) currently has an Earnings ESP of +3.41% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 41 cents implies a rise of 7.9% from the year-ago reported number.
Fortinet’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.40 billion, which suggests an increase of 8.4% from the prior-year quarter. FTNT has a trailing four-quarter earnings surprise of 13.6%, on average.
Meta Platforms, Inc. (META - Free Report) currently has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for META’s quarterly revenues is pegged at $40 billion, which implies a jump of 17.4% from the year-ago quarter’s reported figure.
The company is expected to register an increase in the bottom line. The consensus estimate for Meta’s third-quarter earnings is pegged at $5.09 per share, which suggests a rise of 16% from the year-ago quarter. META has a trailing four-quarter earnings surprise of 12.6%, on average.
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New York Times (NYT) Lined Up for Q2 Earnings: What to Expect?
As The New York Times Company (NYT - Free Report) prepares to release its second-quarter 2024 numbers on Aug 7 before the opening bell, the focus will be on subscription growth, advertising revenue trends, cost management and the impact of new strategic initiatives.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $622.9 million, which indicates an increase of 5.4% from the prior-year reported figure.
The company is also expected to see a year-over-year improvement in the bottom line. The Zacks Consensus Estimate for earnings per share has remained stable at 40 cents over the past 30 days, suggesting a 5.3% increase from the year-ago period.
This diversified media company has a trailing four-quarter earnings surprise of 49.4%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 72.2%.
Factors to Note
The New York Times Company's top line is likely to have benefited from growth in subscriptions, driven by high-quality content and an effective digital strategy. Additionally, effective content monetization strategies and efficient cost management practices are likely to have enhanced profitability.
The New York Times has been successful in converting its readers into paying subscribers, thanks to high-quality journalism and strategic investments in digital content. The integration of technological advancements has allowed the company to engage its target audience more effectively.
On its last earnings call, management guided a year-over-year increase of approximately 6-8% in total subscription revenues for the second quarter, with digital-only subscription revenues expected to rise around 11-14%. The Zacks Consensus Estimate for subscription revenues is currently pegged at $438.6 million, which indicates growth of 7.1%. The consensus mark for digital-only subscription revenues stands at $303.3 million, which suggests an increase of 12.4%.
The continued expansion of The New York Times' subscriber base is pivotal. The consensus estimate suggests that the digital-only subscriber count will reach 10.1 million at the end of the second quarter.
As the subscriber base increases, so does the company's influence and market standing, making it an appealing platform for advertisers eager to connect with a wider and more engaged audience. Strategic acquisitions, such as Wirecutter, a product review website, and The Athletic, a digital subscription-based sports media business, have expanded the company's addressable market.
Moreover, The New York Times has been actively reducing its dependence on traditional advertising by prioritizing digitization. Management anticipates high-single-digit growth in digital advertising revenues and aims to solidify its position as a premier source of news and information while diversifying into lifestyle products such as Games, Shopping, Cooking and Sports. The Zacks Consensus Estimate for digital advertising revenues is currently pegged at $79.7 million, which indicates growth of 7.9%.
However, there are concerns regarding softness in print advertising. Additionally, any increase in expenses related to product development, sales and marketing, and general and administrative functions could potentially impact margins. The company's forecast includes an estimated 4-5% increase in adjusted operating costs for the quarter under review.
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. 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. However, that’s not the case here.
The New York Times Company has a Zacks Rank #3 but 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 the 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:
DigitalOcean Holdings (DOCN - Free Report) has an Earnings ESP of +2.19% and currently sports a Zacks Rank of 1. DOCN's top line is anticipated to advance year over year when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $188.6 million, which suggests an 11.1% increase from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a decline in the bottom line. The consensus estimate for DigitalOcean’s second-quarter earnings is pegged at 39 cents a share, which indicates a fall of 11.4% from the year-ago quarter. DOCN has a trailing four-quarter earnings surprise of 16.1%, on average.
Fortinet, Inc. (FTNT - Free Report) currently has an Earnings ESP of +3.41% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 41 cents implies a rise of 7.9% from the year-ago reported number.
Fortinet’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.40 billion, which suggests an increase of 8.4% from the prior-year quarter. FTNT has a trailing four-quarter earnings surprise of 13.6%, on average.
Meta Platforms, Inc. (META - Free Report) currently has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for META’s quarterly revenues is pegged at $40 billion, which implies a jump of 17.4% from the year-ago quarter’s reported figure.
The company is expected to register an increase in the bottom line. The consensus estimate for Meta’s third-quarter earnings is pegged at $5.09 per share, which suggests a rise of 16% from the year-ago quarter. META has a trailing four-quarter earnings surprise of 12.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.