New York Times (NYSE:NYT) Issues Earnings Results

New York Times (NYSE:NYT) announced its quarterly earnings results on Wednesday. The company reported $0.69 EPS for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02, FiscalAI reports. New York Times had a net margin of 13.18% and a return on equity of 22.02%. The firm had revenue of $762.46 million during the quarter, compared to analysts’ expectations of $752.01 million. During the same quarter last year, the company posted $0.58 earnings per share. The company’s revenue for the quarter was up 11.2% compared to the same quarter last year.

Here are the key takeaways from New York Times’ conference call:

• Positive Sentiment: Q2 revenue grew 11%, adjusted operating profit increased 16% to approximately $155 million, and adjusted diluted EPS rose 19% to $0.69.
• Positive Sentiment: The company added 280,000 net new digital subscribers, reaching approximately 13.4 million; digital-only subscription revenue increased 16.4% to $408 million, supported by subscriber growth and favorable pricing-step-up performance.
• Positive Sentiment: Advertising exceeded expectations, with digital advertising revenue up 20.7% and total advertising revenue up approximately 11.3%; growth was broad-based across the portfolio, though video currently contributes only modestly to advertising growth.
• Neutral Sentiment: The Times is substantially increasing video production and investment, including reporter-led video, visual investigations, and long-form shows, viewing video as a long-term audience and monetization opportunity.
• Negative Sentiment: Adjusted operating costs rose 10%, above guidance, while management warned that major technology platforms are driving less traffic to publishers. Q3 digital subscription growth is expected to moderate to 12%–15%, and first-half free cash flow benefited from seasonal working-capital timing and a largely nonrecurring $60 million tax benefit.

New York Times Trading Down 14.1%

NYT stock traded down $10.65 during trading hours on Wednesday, hitting $64.96. 6,327,909 shares of the stock were exchanged, compared to its average volume of 2,097,277. New York Times has a 12 month low of $54.10 and a 12 month high of $87.10. The firm has a market capitalization of $10.51 billion, a P/E ratio of 27.85, a P/E/G ratio of 1.56 and a beta of 0.95. The company has a 50-day simple moving average of $73.89 and a two-hundred day simple moving average of $76.31.

New York Times Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 23rd. Shareholders of record on Wednesday, July 8th were given a dividend of $0.23 per share. The ex-dividend date was Wednesday, July 8th. This represents a $0.92 annualized dividend and a yield of 1.4%. New York Times’s dividend payout ratio (DPR) is presently 39.48%.

Analyst Upgrades and Downgrades

NYT has been the topic of a number of research analyst reports. Bank of America dropped their target price on shares of New York Times from $87.00 to $80.00 and set a “neutral” rating on the stock in a report on Wednesday, June 24th. Weiss Ratings reissued a “buy (b)” rating on shares of New York Times in a research report on Friday, July 17th. Barclays upped their price objective on New York Times from $60.00 to $66.00 and gave the company an “equal weight” rating in a research note on Thursday, May 7th. Guggenheim raised their price objective on New York Times from $63.00 to $70.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Finally, Citigroup reaffirmed a “neutral” rating on shares of New York Times in a research report on Wednesday, June 24th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, New York Times currently has a consensus rating of “Moderate Buy” and an average price target of $83.22.

New York Times News Roundup

Here are the key news stories impacting New York Times this week:

• Positive Sentiment: NYT reported second-quarter earnings of $0.69 per share, above the $0.67 analyst consensus and up from $0.58 a year earlier. Revenue reached $762.46 million, exceeding estimates of $752.01 million and increasing 11.2% year over year. New York Times Co. Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Unusually heavy options activity included 18,448 purchased call options, more than ten times typical call volume. This may indicate short-term bullish positioning or speculation, although options activity is not a fundamental signal by itself.
• Neutral Sentiment: The quarter’s results showed higher profit and revenue, but subscriber growth slowed sequentially, leaving investors to weigh strong financial performance against concerns about the company’s growth trajectory. New York Times Posts Higher Revenue, as Subscriber Growth Slows
• Negative Sentiment: NYT added approximately 280,000 net digital-only subscribers in the second quarter, below the estimated 295,300. The shortfall raised concerns that the company’s core digital-subscription growth is losing momentum. NYT Stock Drops as Digital Subscriber Growth Slows
• Negative Sentiment: Management issued a weaker-than-anticipated outlook for digital subscription revenue, intensifying investor concerns that future growth may not match the company’s otherwise solid earnings and revenue performance.

Insider Activity

In other New York Times news, EVP Jacqueline M. Welch sold 4,000 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $74.14, for a total value of $296,560.00. Following the completion of the sale, the executive vice president owned 23,873 shares of the company’s stock, valued at $1,769,944.22. The trade was a 14.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director David S. Perpich sold 9,000 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $77.06, for a total transaction of $693,540.00. Following the transaction, the director directly owned 28,469 shares in the company, valued at $2,193,821.14. This represents a 24.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 17,121 shares of company stock valued at $1,310,920. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On New York Times

A number of large investors have recently added to or reduced their stakes in the stock. Larson Financial Group LLC increased its stake in New York Times by 59.6% during the 3rd quarter. Larson Financial Group LLC now owns 656 shares of the company’s stock worth $38,000 after acquiring an additional 245 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of New York Times by 690.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 846 shares of the company’s stock valued at $42,000 after acquiring an additional 739 shares during the period. Employees Retirement System of Texas grew its holdings in shares of New York Times by 101.6% during the 3rd quarter. Employees Retirement System of Texas now owns 1,006 shares of the company’s stock worth $58,000 after purchasing an additional 507 shares in the last quarter. Atlas Capital Advisors Inc. acquired a new stake in shares of New York Times during the 4th quarter worth $71,000. Finally, UMB Bank n.a. increased its position in shares of New York Times by 12.9% in the fourth quarter. UMB Bank n.a. now owns 2,026 shares of the company’s stock worth $141,000 after purchasing an additional 231 shares during the period. Institutional investors and hedge funds own 95.37% of the company’s stock.

New York Times Company Profile

The New York Times Company is a publicly traded media organization best known for publishing The New York Times newspaper and operating the NYTimes.com digital platform. The company produces daily print and digital journalism covering national and international news, opinion pieces, feature stories, and multimedia content. Alongside its flagship newspaper, the firm offers a range of subscription-based services, including Times Cooking, NYT Games, podcasts and newsletters, designed to engage a broad audience of readers and advertisers.

Founded in 1851 by Henry Jarvis Raymond and George Jones, The New York Times has built a reputation for in-depth reporting and investigative journalism.