The New York Times Company NYT, a diversified media conglomerate, is expected to report second-quarter 2015 results before the market opens on Aug 6. The big question facing investors now is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported, after registering three consecutive quarters of earnings beat. Here’s a discussion on the determinants of the second-quarter results:
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that The New York Times Company is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The New York Times Company has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 11 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Softness in print advertising demand has been weighing on The New York Times Company’s performance, and this quarter may not be an exception. We observe that print advertising revenues fell 11.1% in first-quarter 2015, following a decline of 9.2% in the final quarter of 2014.
Consequently, The New York Times Company has been adding diverse revenue streams, including a pay-and-read model, to stay less vulnerable to economic conditions. The company is also adapting to the changing face of the multiplatform media universe, and has already added mobile and reader application products to its portfolio.
Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Guess' Inc. GES has an Earnings ESP of +6.67% and a Zacks Rank #1 (Strong Buy).
Dean Foods Company DF has an Earnings ESP of +3.85% and a Zacks Rank #2 (Buy).
The Walt Disney Company DIS has an Earnings ESP of +2.16% and a Zacks Rank #3.
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