New York Times (NYT) Lined Up for Q3 Earnings: Factors to Note
The New York Times Company NYT is likely to register an increase in the top line when it reports third-quarter 2023 numbers on Nov 8 before market open. The Zacks Consensus Estimate for revenues is pegged at $589.9 million, indicating an improvement of 7.7% from the prior-year reported figure. Over the past 30 days, the Zacks Consensus Estimate for third-quarter earnings per share has been stable at 29 cents.
This diversified media company has a trailing four-quarter earnings surprise of 43.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 81%.
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 streamlining for enhanced 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 third quarter of 2023, projecting an approximate year-over-year increase of 8-10% in total subscription revenues and a surge of around 14-17% in digital-only subscription revenues.
Furthermore, the company has been actively reducing its reliance on traditional advertising by focusing on digitization. It's not only striving to become a leading source of news and information but also branching out into lifestyle products and services. Regarding advertising revenues in the third quarter, The New York Times Company anticipates flat total advertising revenues and a mid-single-digit increase in digital advertising revenues.
However, it's worth noting that any deleverage 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 5-8% increase in adjusted operating costs for the third quarter.
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:
Synopsys SNPS sports a Zacks Rank #1 and has an Earnings ESP of +0.94%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 29. It has a trailing four-quarter earnings surprise of 4.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ fourth-quarter earnings is pegged at $3.04 per share, indicating a year-over-year increase of 59.2%. The consensus mark for revenues stands at $1.58 billion, suggesting a year-over-year surge of 23.3%.
Dell Technologies DELL sports a Zacks Rank #1 and has an Earnings ESP of +1.14%. The company is scheduled to report third-quarter fiscal 2024 results on Nov 30. It has a trailing four-quarter earnings surprise of 39.5%, on average.
The Zacks Consensus Estimate for Dell’s third-quarter earnings stands at $1.47 per share, indicating a year-over-year decline of 36.1%. It is estimated to report revenues of $22.93 billion, which suggests a decrease of approximately 7.2% from the year-ago quarter.
Snowflake SNOW is slated to report third-quarter fiscal 2024 results on Nov 29. The company has a Zacks Rank #2 and an Earnings ESP of +15.71% at present. Snowflake’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 244.5%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 15 cents per share, suggesting an increase of 36.4% from the year-ago quarter’s earnings of 11 cents. Snowflake’s quarterly revenues are estimated to grow 27.6% year over year to $710.5 million.
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The New York Times Company (NYT) : Free Stock Analysis Report
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