The New York Times Company's Q4 Earnings on Deck: Factors to Note

The New York Times Company NYT is set to announce its fourth-quarter 2024 earnings on Feb. 5. before the market opens. Key focus areas will include subscription growth, advertising revenue patterns and the outcomes of recent strategic initiatives.The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $725.1 million, indicating a 7.2% rise from the prior-year period.This diversified media conglomerate is also expected to show improvement in the bottom line. The consensus estimate for earnings per share has remained steady at 74 cents over the past 30 days, suggesting a 5.7% increase from the year-ago period.With a four-quarter trailing average earnings surprise of 27.1%, NYT has consistently outperformed expectations. In the last reported quarter, the company surpassed the Zacks Consensus Estimate for EPS by 7.1%, bolstering investor interest ahead of this report.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Factors Shaping The New York Times Company’s Q4 OutcomeThe New York Times Company's emphasis on subscription growth and digital innovation has been instrumental to its sustained progress. By continually enhancing digital offerings, attracting new subscribers and optimizing average revenue per user, the company has demonstrated resilience and a strong market presence.The company's top line is likely to have benefited from growth in subscriptions, driven by high-quality content and an effective digital approach. Also, effective content monetization and cost management practices are likely to have enhanced profitability.A significant factor behind The New York Times Company's success has been its ability to convert readers into paying subscribers through quality journalism and well-timed digital investments. Technological advancements have improved audience engagement, allowing the company to reach its target audience more effectively.The New York Times Company Price, Consensus and EPS Surprise The New York Times Company price-consensus-eps-surprise-chart | The New York Times Company QuoteOn its last earnings call, management projected a 7-9% year-over-year increase in total subscription revenues for the fourth quarter, with digital-only subscription revenues anticipated to rise 14-17%. Currently, the Zacks Consensus Estimate for subscription revenues is pegged at $466.3 million, implying 8.3% growth, while digital-only subscription revenues are estimated at $333.3 million, suggesting a 15.5% increase.The New York Times Company's expanding subscriber base is central to its growth strategy. The consensus estimate indicates that the digital-only subscriber count is likely to reach 10.9 million by the end of the fourth quarter. This growth solidifies its influence and market standing, positioning it as an attractive platform for advertisers seeking an engaged audience. In line with this, The New York Times Company has made significant strides in reducing dependence on traditional advertising by focusing on digital avenues. Management anticipates high-single-digit to low-double-digit growth in digital advertising revenues, with plans to enhance its standing as a premier news source while diversifying into lifestyle content, such as Games, Cooking and Sports. The Zacks Consensus Estimate for digital advertising revenues stands at $118.3 million, indicating a 9.8% increase.Despite these positive trends, the company faces some challenges. Print subscription revenues and print advertising revenues are likely to have softened, with the consensus estimate for print subscriptions being pegged at $132.9 million, down 6.2%, and print advertising revenues expected to fall 12.9% to $49.1 million. Increased spending on product development, marketing and administrative functions may also impact margins. NYT foresees adjusted operating costs to rise by 5-6% for the quarter under review.What the Zacks Model Predicts for NYTOur proven model does not conclusively predict an earnings beat for The New York Times Company this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.The New York Times Company has a Zacks Rank #2 but an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks With the Favorable CombinationHere are companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:Twilio Inc. TWLO currently has an Earnings ESP of +3.28% and a Zacks Rank of 1. The company is expected to register top-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for Twilio’s quarterly revenues is pegged at $1.17 billion, which implies a jump of 9% from the year-ago quarter’s reported figure.The company is expected to register an increase in the bottom line. The consensus estimate for TWLO’s fourth-quarter earnings is pegged at $1.02 per share, which suggests a rise of 18.6% from the year-ago quarter. TWLO has a trailing four-quarter earnings surprise of 31%, on average.Tenable Holdings, Inc. TENB currently has an Earnings ESP of +1.94% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 34 cents calls for a rise of 36% from the year-ago reported number. Tenable Holdings’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $231.8 million, which suggests an increase of 8.7% from the prior-year quarter. TENB has a trailing four-quarter earnings surprise of 40.7%, on average.Palo Alto Networks, Inc. PANW has an Earnings ESP of +2.07% and currently carries a Zacks Rank of 3. PANW's top line is anticipated to advance year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.24 billion, which suggests a 13.3% increase from the figure reported in the year-ago quarter. The company is expected to register an increase in the bottom line. The consensus estimate for PANW’s second-quarter earnings is pegged at 75 cents a share, which indicates a drop of 2.7% from the year-ago quarter. PANW has a trailing four-quarter earnings surprise of 7.6%, on average.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The New York Times Company (NYT): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis Report Tenable Holdings, Inc. (TENB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks