Newspaper and digital media company The New York Times (NYSE: NYT) will be reporting results this Wednesday before market open. Here’s what to look for.
The New York Times beat analysts’ revenue expectations last quarter, reporting revenues of $762.5 million, up 11.2% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates. It reported 12.8 million subscribers, up 13.3% year on year.
Is The New York Times a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting The New York Times’s revenue to grow 9.4% year on year, in line with the 9.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. The New York Times has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at The New York Times’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Scholastic’s revenues decreased 3.9% year on year, missing analysts’ expectations by 3.5%, and Hilton Grand Vacations reported revenues up 50.8%, topping estimates by 39.5%. Scholastic traded down 7.1% following the results while Hilton Grand Vacations was up 8.2%.
Read our full analysis of Scholastic’s results here and Hilton Grand Vacations’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.7% on average over the last month. The New York Times is up 8.4% during the same time and is heading into earnings with an average analyst price target of $76.89 (compared to the current share price of $69.37).
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