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NY Times (NYT) Q1 Earnings: What's in Store for the Stock?

Zacks Equity Research
Updated

The New York Times Company NYT, a diversified media conglomerate, is slated to report first-quarter 2016 results on May 3. The big question facing investors now is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. The company has surpassed earnings expectations for six straight quarters. The average positive surprise over the trailing four quarters comes to 33.3%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that The New York Times Company is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The New York Times Company has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 9 cents. The New York Times Company’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

Factors Influencing this Quarter

The New York Times Company is diversifying its business, adding new revenue streams, strengthening its balance sheet and restructuring its portfolio. It had offloaded assets in order to re-focus on its core newspapers and pay more attention to its online activities. We believe these moves will have a favorable impact on the quarter to be reported.

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However, advertising revenue remains an area of concern for the company. Total advertising revenue fell 1.3% year over year during the final quarter of 2015. Print advertising revenue declined 6.6% in the quarter, while digital advertising revenue remained the bright spot, advancing 10.6%. Management had earlier projected total advertising revenue to decline in the range of 2%–4% during the first quarter of 2016.

The New York Times Company (NYT) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Stocks Poised to Beat Earnings Estimates

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

Time Warner Inc. TWX has an Earnings ESP of +1.55% and a Zacks Rank #3.

Twenty-First Century Fox, Inc. FOXA has an Earnings ESP of +2.17% and a Zacks Rank #3.

CBS Corporation CBS has an Earnings ESP of +1.08% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
TIME WARNER INC (TWX): Free Stock Analysis Report
 
CBS CORP (CBS): Free Stock Analysis Report
 
NY TIMES A (NYT): Free Stock Analysis Report
 
TWENTY-FST CF-A (FOXA): Free Stock Analysis Report
 
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Zacks Investment Research