Yahoo Finance New York Times (NYT) to Report Q1 Earnings: What's in Store?
The New York Times Company NYT is likely to register an increase in the top line when it reports first-quarter 2024 numbers on May 8 before market open. The Zacks Consensus Estimate for revenues is pegged at $590.6 million, which indicates an improvement of 5.3% from the prior-year reported figure.
However, the company is expected to observe a year-over-year decrease in its bottom line. The Zacks Consensus Estimate for first-quarter earnings per share has been stable at 18 cents in the past 30 days, which suggests a decline of 5.3% from the year-ago period.
This diversified media company has a trailing four-quarter earnings surprise of 36%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 16.7%.
Factors to Note
The New York Times Company has undertaken significant initiatives to diversify its business and adapt to the changing media landscape. These efforts include the introduction of new revenue streams, cost structure realignment and operational efficiency. With a growing emphasis on subscription revenues, the company's business model appears well-positioned for continued growth.
The integration of technological advancements has allowed The New York Times Company to engage its target audience more effectively. 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.
On its last earnings call, management provided guidance for the first quarter of 2024, projecting a year-over-year increase of approximately 7-9% in total subscription revenues, with digital-only subscription revenues expected to rise around 11-14%.
The continued expansion of The New York Times Company's subscriber base is undeniably pivotal. 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.
Moreover, the company has been actively reducing its dependence on traditional advertising by prioritizing digitization. Management anticipates low-to-high-single-digit growth in digital advertising revenues and aims to not only solidify its position as a premier source of news and information but also diversify into lifestyle products such as Games, Shopping, Cooking and Sports.
However, there are concerns regarding softness in advertising revenues, particularly in print advertising. The company expects a mid-single-digit decline in total advertising revenues in the first quarter.
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 5-7% 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:
Arista Networks ANET carries a Zacks Rank #2 and has an Earnings ESP of +3.76%. The company is scheduled to report first-quarter 2024 results on May 7. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 13.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ first-quarter earnings stands at $1.74 per share, which indicates a year-over-year improvement of 21.7%. It is estimated to report revenues of $1.55 billion, which suggests an increase of approximately 14.8% from the year-ago quarter.
NVIDIA NVDA is slated to report first-quarter fiscal 2025 results on May 22. The company has a Zacks Rank #2 and an Earnings ESP of +2.50% at present. NVIDIA’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20.2%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $5.49 per share, which suggests a sharp increase from the year-ago quarter’s earnings of $1.09. NVIDIA’s quarterly revenues are estimated to improve to $24.17 billion from $7.19 billion in the year-ago quarter.
Alight ALIT carries a Zacks Rank #3 and has an Earnings ESP of +8.33%. The company is scheduled to report first-quarter 2024 results on May 8. The company has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Alight’s first-quarter earnings is pegged at 12 cents a share, which implies a year-over-year decrease of 7.7%. The consensus mark for revenues stands at $832.4 million, which calls for a marginal increase of 0.2% from the year-ago period.
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The New York Times Company (NYT) : Free Stock Analysis Report
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Alight, Inc. (ALIT) : Free Stock Analysis Report
