The New York Times
The 10-second takeaway
For the quarter ended March 25 (Q1), New York Times met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Gross margins grew, operating margins dropped, net margins grew.
New York Times reported revenue of $499.4 million. The four analysts polled by S&P Capital IQ foresaw revenue of $500.7 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $566.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.08. The six earnings estimates compiled by S&P Capital IQ averaged $0.02 per share on the same basis. GAAP EPS of $0.28 for Q1 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.3%, 30 basis points better than the prior-year quarter. Operating margin was 3.9%, 170 basis points worse than the prior-year quarter. Net margin was 8.4%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $510.8 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $0.64.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 170 members out of 429 rating the stock outperform, and 259 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give New York Times a green thumbs-up, and 94 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on New York Times is hold, with an average price target of $8.25.
Over the decades, small-cap stocks, like New York Times have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add New York Times to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.