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Factors Likely to Decide NY Times (NYT) Fate in Q4 Earnings

The New York Times Company NYT is likely to register an increase in the top line, when it reports fourth-quarter 2021 numbers on Feb 2, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $580.9 million, indicating an improvement of 14% from the prior-year reported figure.

The bottom line of this diversified media conglomerate is expected to decline year over year. The Zacks Consensus Estimate for fourth-quarter earnings per share of 35 cents has remained unchanged in the past 30 days. The figure suggests a decline of 12.5% from the year-ago quarter’s reported figure.

The company has a trailing four-quarter earnings surprise of 31.1%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 15%.

Factors to Note

The New York Times Company has been utilizing technological advancements to reach its target audience more effectively. The company’s business model with greater emphasis on subscription revenues bodes well. On its last earnings call, management guided an increase of about 12% year over year in total subscription revenues and a rise of approximately 25% in digital-only subscription revenues for the final quarter of 2021.

The company has been making concerted efforts to lower dependence on traditional advertising and focusing on digitization. It has been diversifying business, adding new revenue streams, and streamlining operations to increase efficiencies. The company has not only been gearing up to become an optimum destination for news and information but also focusing on lifestyle products and services.

The New York Times Company had guided mid-teens increase in both total advertising and digital advertising revenues for the fourth quarter. However, management informed that the rate of growth in digital advertising revenues is likely to decelerate from the third quarter, partly as a result of more difficult comparisons in the fourth quarter.

The company also had earlier forecast an increase of approximately 17-20% in adjusted operating costs, as it continues to invest in the drivers of digital subscription growth. This is likely to have weighed on the bottom-line performance.

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 around. 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. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Although The New York Times Company carries a Zacks Rank #3, it has 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 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:

Advanced Micro Devices AMD currently has an Earnings ESP of +3.47% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 75 cents suggests an increase of 44.2% from the year-ago reported number.

Advanced Micro Devices’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.52 billion, which suggests an increase of 39.4% from the prior-year quarter. AMD has a trailing four-quarter earnings surprise of 14%, on average.

Discovery DISCA currently has an Earnings ESP of +0.79% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 88 cents suggests an improvement of 15.8% from the year-ago quarter.

Discovery's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.13 billion, which indicates an improvement of 8.4% from the figure reported in the prior-year quarter. In the last reported quarter, DISCA’s bottom line outperformed the Zacks Consensus Estimate by a margin of 5%.

Alphabet GOOGL currently has an Earnings ESP of +2.11% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $26.69 suggests growth of 19.7% from the year-ago quarter’s reported figure.

Alphabet’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $59.32 billion, indicating an increase of 27.8% from the figure reported in the year-ago quarter. GOOGL has a trailing four-quarter earnings surprise of 41.5%, on average.




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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
 
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