New York Times
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), New York Times missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
New York Times booked revenue of $449.0 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $479.1 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $537.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.01. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.02 for Q3 were 80% lower than the prior-year quarter's $0.10 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 55.1%, 150 basis points worse than the prior-year quarter. Operating margin was 1.9%, 480 basis points worse than the prior-year quarter. Net margin was 0.5%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $577.1 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $0.63.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 164 members out of 432 rating the stock outperform, and 268 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give New York Times a green thumbs-up, and 98 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 $8.71.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.