We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Assessing The New York Times Company Ahead of Q3 Earnings Release
Read MoreHide Full Article
The New York Times Company (NYT - Free Report) is set to announce its third-quarter 2024 earnings on Nov. 4 before the market opens. Key focus areas will include subscription growth, advertising revenue patterns, cost control efforts and the outcomes of recent strategic initiatives.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $640.4 million, indicating a 7% rise from the prior-year period.
This diversified media conglomerate is also expected to show improvement in the bottom line. The consensus estimate for earnings per share has remained steady at 42 cents over the past 30 days, suggesting a 13.5% increase from the year-ago period.
With a four-quarter trailing average earnings surprise of 32.3%, NYT has consistently outperformed expectations. In the last reported quarter, the company surpassed the Zacks Consensus Estimate for EPS by 12.5%, bolstering investor interest ahead of this report.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The New York Times Company Price, Consensus and EPS Surprise
Factors Shaping The New York Times Company’s Q3 Outcome
The New York Times Company's emphasis on subscription growth and digital innovation has been instrumental to its sustained progress. By continually enhancing digital offerings, attracting new subscribers and optimizing average revenue per user, the company has demonstrated resilience and a strong market presence.
The company's top line is likely to have benefited from growth in subscriptions, driven by high-quality content and an effective digital approach. Also, effective content monetization and cost management practices are likely to have enhanced profitability.
A significant factor behind The New York Times Company's success has been its ability to convert readers into paying subscribers through quality journalism and well-timed digital investments. Technological advancements have improved audience engagement, allowing the company to reach its target audience more effectively.
On its last earnings call, management projected a 7-9% year-over-year increase in total subscription revenues for the third quarter, with digital-only subscription revenues expected to rise by 12-15%. Currently, the Zacks Consensus Estimate for subscription revenues is pegged at $453 million, implying 8.2% growth, while digital-only subscription revenues are estimated at $320.9 million, suggesting a 13.7% increase.
The New York Times Company's expanding subscriber base is central to its growth strategy. The consensus estimates indicate that the digital-only subscriber count is likely to reach 10.5 million by the end of the third quarter. This growth solidifies its influence and market standing, positioning it as an attractive platform for advertisers seeking an engaged audience. Strategic acquisitions like Wirecutter and The Athletic have broadened the company’s market reach.
In line with this, The New York Times Company has made significant strides in reducing dependence on traditional advertising by focusing on digital avenues. Management anticipates high-single-digit growth in digital advertising revenues, with plans to enhance its standing as a premier news source while diversifying into lifestyle content, such as Games, Cooking and Sports. The Zacks Consensus Estimate for digital advertising revenues stands at $80.9 million, indicating a 7.8% increase.
Despite these positive trends, the company faces some challenges. Print subscription revenues and advertising revenues are likely to have softened, with the consensus estimate for print subscriptions being pegged at $132.2 million, down 3.1%, and print advertising expected to fall 10.7% to $37.6 million. Increased spending on product development, marketing and administrative functions may also impact margins. NYT foresees adjusted operating costs to rise by 5-6% for the quarter under review.
What the Zacks Model Predicts for NYT
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:
Fortinet, Inc. (FTNT - Free Report) currently has an Earnings ESP of +1.25% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 51 cents implies a rise of 24.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.48 billion, which suggests an increase of 10.7% from the prior-year quarter. FTNT has a trailing four-quarter earnings surprise of 20.4%, on average.
Meta Platforms, Inc. (META - Free Report) currently has an Earnings ESP of +2.83% and a Zacks Rank of 2. 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 $40.2 billion, which implies a jump of 17.6% 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 $5.17 per share, which suggests a rise of 17.8% from the year-ago quarter. META has a trailing four-quarter earnings surprise of 12.6%, on average.
Comcast Corporation (CMCSA - Free Report) has an Earnings ESP of +2.82% and currently carries a Zacks Rank of 3. CMCSA's top line is anticipated to advance year over year when it reports third-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $31.8 billion, which suggests a 5.6% increase from the figure reported in the year-ago quarter.
The company is expected to register a decline in the bottom line. The consensus estimate for Comcast’s third-quarter earnings is pegged at $1.06 per share, which indicates a drop of 1.9% from the year-ago quarter. CMCSA has a trailing four-quarter earnings surprise of 8.8%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Assessing The New York Times Company Ahead of Q3 Earnings Release
The New York Times Company (NYT - Free Report) is set to announce its third-quarter 2024 earnings on Nov. 4 before the market opens. Key focus areas will include subscription growth, advertising revenue patterns, cost control efforts and the outcomes of recent strategic initiatives.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $640.4 million, indicating a 7% rise from the prior-year period.
This diversified media conglomerate is also expected to show improvement in the bottom line. The consensus estimate for earnings per share has remained steady at 42 cents over the past 30 days, suggesting a 13.5% increase from the year-ago period.
With a four-quarter trailing average earnings surprise of 32.3%, NYT has consistently outperformed expectations. In the last reported quarter, the company surpassed the Zacks Consensus Estimate for EPS by 12.5%, bolstering investor interest ahead of this report.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
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
Factors Shaping The New York Times Company’s Q3 Outcome
The New York Times Company's emphasis on subscription growth and digital innovation has been instrumental to its sustained progress. By continually enhancing digital offerings, attracting new subscribers and optimizing average revenue per user, the company has demonstrated resilience and a strong market presence.
The company's top line is likely to have benefited from growth in subscriptions, driven by high-quality content and an effective digital approach. Also, effective content monetization and cost management practices are likely to have enhanced profitability.
A significant factor behind The New York Times Company's success has been its ability to convert readers into paying subscribers through quality journalism and well-timed digital investments. Technological advancements have improved audience engagement, allowing the company to reach its target audience more effectively.
On its last earnings call, management projected a 7-9% year-over-year increase in total subscription revenues for the third quarter, with digital-only subscription revenues expected to rise by 12-15%. Currently, the Zacks Consensus Estimate for subscription revenues is pegged at $453 million, implying 8.2% growth, while digital-only subscription revenues are estimated at $320.9 million, suggesting a 13.7% increase.
The New York Times Company's expanding subscriber base is central to its growth strategy. The consensus estimates indicate that the digital-only subscriber count is likely to reach 10.5 million by the end of the third quarter. This growth solidifies its influence and market standing, positioning it as an attractive platform for advertisers seeking an engaged audience. Strategic acquisitions like Wirecutter and The Athletic have broadened the company’s market reach.
In line with this, The New York Times Company has made significant strides in reducing dependence on traditional advertising by focusing on digital avenues. Management anticipates high-single-digit growth in digital advertising revenues, with plans to enhance its standing as a premier news source while diversifying into lifestyle content, such as Games, Cooking and Sports. The Zacks Consensus Estimate for digital advertising revenues stands at $80.9 million, indicating a 7.8% increase.
Despite these positive trends, the company faces some challenges. Print subscription revenues and advertising revenues are likely to have softened, with the consensus estimate for print subscriptions being pegged at $132.2 million, down 3.1%, and print advertising expected to fall 10.7% to $37.6 million. Increased spending on product development, marketing and administrative functions may also impact margins. NYT foresees adjusted operating costs to rise by 5-6% for the quarter under review.
What the Zacks Model Predicts for NYT
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:
Fortinet, Inc. (FTNT - Free Report) currently has an Earnings ESP of +1.25% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 51 cents implies a rise of 24.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.48 billion, which suggests an increase of 10.7% from the prior-year quarter. FTNT has a trailing four-quarter earnings surprise of 20.4%, on average.
Meta Platforms, Inc. (META - Free Report) currently has an Earnings ESP of +2.83% and a Zacks Rank of 2. 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 $40.2 billion, which implies a jump of 17.6% 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 $5.17 per share, which suggests a rise of 17.8% from the year-ago quarter. META has a trailing four-quarter earnings surprise of 12.6%, on average.
Comcast Corporation (CMCSA - Free Report) has an Earnings ESP of +2.82% and currently carries a Zacks Rank of 3. CMCSA's top line is anticipated to advance year over year when it reports third-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $31.8 billion, which suggests a 5.6% increase from the figure reported in the year-ago quarter.
The company is expected to register a decline in the bottom line. The consensus estimate for Comcast’s third-quarter earnings is pegged at $1.06 per share, which indicates a drop of 1.9% from the year-ago quarter. CMCSA has a trailing four-quarter earnings surprise of 8.8%, on average.