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 met analysts’ revenue expectations last quarter, reporting revenues of $635.9 million, up 7.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates. It reported 11.66 million subscribers, up 10.5% year on year.
Is The New York Times a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The New York Times’s revenue to grow 7.2% year on year to $670.3 million, improving from the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The New York Times has missed Wall Street’s revenue estimates three times over the last two years.
Looking at The New York Times’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Scholastic delivered year-on-year revenue growth of 7%, beating analysts’ expectations by 2.8%, and Hasbro reported a revenue decline of 1.5%, topping estimates by 11.2%. Scholastic traded up 23.9% following the results while Hasbro was down 3.3%.
Read our full analysis of Scholastic’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.5% on average over the last month. The New York Times is down 4.9% during the same time and is heading into earnings with an average analyst price target of $58.38 (compared to the current share price of $53.75).
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