The New York Times Company (NYSE:NYT) is scheduled to report Q3 earnings results on November 5, 2020.
The company is expected to report earnings of $0.12/share on revenue of $411.9 million. The consensus earnings per share (EPS) of $0.12/share is based on a poll of 6 analysts and represents a decline in eps of −0.5% over the same quarter last year, when the company reported earnings of $0.12/share.
The revenue forecast of $411.9 million based on a poll of 4 analysts implies a year-over-year (YoY) decline in revenue of −3.9%. Last year the company reported $428.5 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $411.88 | $428.50 | −3.9% |
| EPS | $0.12 | $0.12 | −0.5% |
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from The New York Times Company for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $0.03 | $0.18 | 500.0% | Beat |
| Q1, 2020 | $0.09 | $0.17 | 96.9% | Beat |
| Q4, 2019 | $0.29 | $0.43 | 49.7% | Beat |
| Q3, 2019 | $0.09 | $0.12 | 28.7% | Beat |
| Q2, 2019 | $0.16 | $0.17 | 6.8% | Beat |
| Q1, 2019 | $0.12 | $0.20 | 67.3% | Beat |
| Q4, 2018 | $0.30 | $0.32 | 7.6% | Beat |
| Q3, 2018 | $0.12 | $0.15 | 28.5% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 28, 2020, the stock price did not react much to the update.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 5, 2020 | $46.79 | $46.48 | −0.7% | Decline |
| May 6, 2020 | $33.36 | $35.10 | 5.2% | Increase |
| February 6, 2020 | $34.20 | $37.42 | 9.4% | Increase |
| November 6, 2019 | $31.92 | $30.21 | −5.4% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.75, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.75 implies a 0.3% chance of earnings manipulation.
Fundamentals And Technical Analysis
The New York Times Company is currently trading at $40.46/share, down −1.9% for the day. The company is trading at approximately 84.6% of its 52-week high of $47.95/share. The company’s stock price is down −13.0% since the last earnings report and down −8.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 39.21 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 48.21 and a forward P/E multiple of 52.66.
The New York Times Company’s current share price also implies a price-to-book (P/B) multiple of 5.54. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 28, 2020 |
| Stock Price (Current) | $40.46 |
| P/E Ratio | 48.2x |
| P/E Ratio (Fwd) | 52.7x |
| PEG Ratio | 13.1 |
| Total Debt / Total Capital | 0.0% |
| Levered Free Cash Flow | $200.6 million |
| EV / EBITDA | 27.8x |
The New York Times Company is a mid-cap stock with a market capitalization of $6.879 billion and a total enterprise value of $6.124 billion. The company operates in the Communication Services sector and the Media industry.
The New York Times Company, together with its subsidiaries, provides news and information for readers and viewers across various platforms worldwide. It offers The New York Times (The Times), a daily and Sunday newspaper in the United States, as well as international edition of The Times; and operates the NYTimes.com Website. The company also transmits articles, graphics, and photographs from The Times and other publications to approximately 1,500 newspapers, magazines, and Websites; licenses electronic databases to resellers in the business, professional, and library markets; and offers magazine licensing, news digests, book development, and rights and permissions. In addition, it engages in the NYT Live business, a platform for its live journalism; operates Wirecutter, a product review and recommendation Website that serves as a guide to technology gear, home products, and other consumer goods; develops mobile applications, including Crossword and Cooking products; prints products for third parties; and offers other products and services. The company was founded in 1851 and is headquartered in New York, New York.
