The New York Times Co. (NYT) - Bull of the Day

By Zacks.com,  July 09, 2012, 01:00:01 AM EDT

The New York Times Company's ( NYT ) first-quarter 2012 earnings of $0.08 per share beat the Zacks Consensus Estimate of $0.02, and increased from a break-even in the prior-year quarter. The quarter reflects favorable response to the digital subscription packages, rise in circulation revenue and cost containment efforts.

To mitigate the ongoing slump in the advertising market, the company is diversifying its business and adding new revenue streams. The company is also streamlining its cost structure, strengthening its balance sheet and restructuring its portfolio. The company is offloading assets that bear no direct relation with the core operations in order to re-focus on its core newspapers and pay more attention to its online activities.

The stock is trading at a discount based on forward earnings estimates. Consequently, we upgrade our recommendation on the stock to Outperform. Our target price of $8.75, 12.3X 2012 EPS, reflects this view.
 
NY TIMES A (NYT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: NYT



Latest News Video



Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.51 0.08  0.60%
RAD $ 2.80 0.01  0.36%
CSCO $ 23.94 0.30  1.24%
MSFT $ 35.06 0.19  0.54%
WCRX $ 19.60 0.39  2.03%
SIRI $ 3.49 0.01  0.29%
FB $ 25.76 0.49  1.87%
S $ 7.29 0.03  0.41%