On Feb 12, 2014, we issued an updated research report on
The New York Times Company
). The company recently reported better-than-expected quarterly
results and the underlying factors are capable of carrying the
Estimates for The New York Times Company have shown an uptrend
since the company reported fourth-quarter 2013 results. The
company posted earnings of 26 cents a share that surpassed the
Zacks Consensus Estimate of 16 cents. The quarter reflects
favorable response to the digital subscription packages, increase
in circulation revenue (excluding the extra week in the fourth
quarter of 2012) and effective cost management.
This is the third consecutive quarter that The New York Times
Company has outpaced the Zacks Consensus Estimate. In the second,
third and fourth quarters it posted positive earnings surprise of
16.7%, 75% and 62.5%, respectively. In the trailing four quarters
it has surpassed the Zacks Consensus Estimate by an average of
The New York Times Company's top line of $443.9 million came
ahead of the Zacks Consensus Estimate of $440 million. Excluding
the extra week in the fourth quarter of 2012, total revenue rose
0.4%, while circulation revenue climbed 2.7%. Management now
expects total circulation revenue to jump in the low single
digits in the first quarter of 2014, gaining from digital
subscription initiatives and increase in print home-delivery
The New York Times Company, which competes with
Gannett Co. Inc.
), has been adding diverse revenue streams, which include a
pay-and-read model, to make it less vulnerable to the economic
conditions. The company is also adapting to the changing face of
the multiplatform media universe, which currently includes
mobile, social media networks and reader application products in
its portfolio. The company has also been offloading its assets to
better position itself and focus on core areas.
The better-than-expected results triggered an upward revision
in the Zacks Consensus Estimates, as analysts become more
constructive on the stock's future performance. This is evident
from the movement witnessed in the Zacks Consensus Estimate that
increased 7.9% to 41 cents for fiscal 2014 and 36.4% to 45 cents
a share for fiscal 2015 in the past 7 days.
The New York Times Company currently carries a Zacks Rank #2
Stocks That Warrant a Look
Other better ranked stocks worth considering include,
) holding a Zacks Rank #1 (Strong Buy) and
Reed Elsevier plc
) carrying a Zacks Rank #2 (Buy).
GANNETT INC (GCI): Free Stock Analysis Report
NY TIMES A (NYT): Free Stock Analysis Report
REED ELSEVR-ADR (RUK): Free Stock Analysis
TRIBUNE CO-A (TRBAA): Get Free Report
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