What To Expect From New York Times’ Q4 Earnings
The New York Times Company (NYSE: NYT) is scheduled to report its fourth quarter results on Thursday, February 8. The company has had a relatively solid 2017 so far, as its earning per share came in ahead of market expectations in all three quarters. NYT has been seeing impressive subscriber figures in the past few quarters, particularly digital subscribers, partially offsetting the print circulation pressure. This surge in the newspaper’s subscriptions is largely being driven by the political climate in the U.S.
Going forward, we expect a continued year-over-year growth in Q4 2017 as well. We have created an Interactive Dashboard which outlines our forecasts for the company and our expectations for its Q4 earnings. You can modify our forecasts to see the impact any changes would have on the company’s earnings and valuation.
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- Up 28% This Year, How Will NY Times’ Stock Trend Following Q3 Results?
- NY Times’ Stock To Likely See Little Movement Post Q2
- NY Times’ Stock To Likely Trade Lower Post Q1
Growth In Digital Subscriptions
In the first nine months of fiscal 2017, NYT reported unprecedented growth in digital subscriptions, which helped the company stabilize its subscription revenues. During this period, the company’s total subscription revenues increased 13% year-over-year (y-o-y), with digital-only subscription revenue growing strongly at 44% y-o-y to $244 million. Overall, NYT’s total revenues grew 7% y-o-y to $1.2 billion, driven by very strong digital revenues. We expect this trend to continue into the fourth quarter as well.
Q4 Guidance
In Q4 2017, NYT expects its total subscription revenues to grow around 10% y-o-y. In addition, it expects the digital subscription revenue to grow at a solid 40% y-o-y. However, the company also expects its overall advertising revenue to decline in low double-digits, with digital advertising flat or decreasing slightly.
Our $16 price estimate for NYT’s stock is around 20% below the current market price.
Have more questions? Please refer to our complete analysis for New York Times
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