The New York Times Company
) is set to report third-quarter 2013 results on Oct 31, before
the market opens. Last quarter, it posted a 16.7% positive
surprise. Let's see how things are shaping up for this
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Growth Factors this Past Quarter
New York Times posted better-than-expected second-quarter results
on the back of favorable response to the digital subscription
packages, increase in circulation revenues and effective cost
management. However, these failed to offset the diminishing
advertising revenues, which recorded a sequential improvement. To
mitigate this, the company is diversifying its business and
adding new revenue streams. The company is also streamlining the
cost structure, strengthening the balance sheet and restructuring
its portfolio. The company is offloading assets that bear no
direct relation to the core operations in order to re-focus on
its core newspapers and pay more attention to its online
Our proven model does not conclusively show that New York Times
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
ESP for New York Times is 0.00%. This is because both the Most
Accurate estimate and the Zacks Consensus Estimate are pegged at
a loss of 4 cents.
The New York Times Company's' Zacks Rank #4 (Sell) lowers the
predictive power of ESP because the Zacks Rank #4 when combined
with an ESP of 0.00% makes surprise prediction difficult. We
caution against stocks with Zacks #4 and 5 Ranks (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
), with Earnings ESP of +7.02% and a Zacks Rank #1 (Strong Buy).
KAR Auction Services, Inc.
), with Earnings ESP of +14.82% and a Zacks Rank #2 (Buy).
Time Warner Inc.
), with Earnings ESP of +1.12% and a Zacks Rank #3 (Hold).