Earnings Preview: The New York Times Company

The New York Times Company (NYT) is expected to report Q3 earnings before market open Thursday, October 23, with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for a profit of 4c on revenue of $691.72M. The consensus range is (1c) to 7c for EPS, and revenue of $669.2M to $705.41M, according to First Call. In July, the company forecast a tough second half of the year "if the economy continues to act the way it is" and predicted continued challenges for advertising in the "faltering economy".

In September, the company reported its August total revenue fell 8.8%. The company also clarified that it will not shut down the International Herald Tribune, despite rumors to the contrary, but it will absorb the IHT.com website into its operations, a move which will allow it to compete more effectively with News Corp's (NWS) The Wall Street Journal. IHT publisher Stephen Dunbar-Johnson says that the crisis in the credit and financial markets are, in the short-term, putting pressure on the paper and the company.

Analyst Views

Dunbar-Johnson, who has seen some softening in October, anticipates a "significant softening" in the last quarter. Revenues have fallen for major newspaper and media companies recently as readers move to the Internet. The drop in home sales, as well as other Worsening economic conditions have cut into major advertising revenues. In early October, the company named Roland Caputo as CFO and Joseph Seibert as CIO. Shares of the company have recently increased on speculation shareholder Carlos Slim, who announced a 6.4% Passive stake in the company on September 10, will announce a tender offer.

Comments

[byrnemm:]

"Revenues have fallen for major newspaper and media companies recently as readers move to the Internet."

Living in Tennessee I have never subscribed to the NYT newspaper, but as of lately I have been a reading the NYT website like a fanatic.

With the election and the economic crisis I think that there have been many like me, searching for the most informed, best reporting up-to-the-minute news and have found the NYT to have the best coverage of the political and economic spheres.

Is there any anticipation of a jump in online traffic, and if so, how does increased web traffic revenue compare to the drop in advertising revenue?

2008 Oct 22 12:59 PM

[notsosmart:]

this paper like so many has an agenda.

2008 Oct 23 10:49 AM