Zacks Investment Research downgraded shares of The New York Times Company (NYT) from OUTPERFORM to NEUTRAL on September 14, 2012, with a target price of $10.00.
The New York Times Company's second-quarter 2012 earnings of $0.14 per share beat the Zacks Consensus Estimate by a penny, and rose 27.3% from the prior-year quarter. The quarter reflects favorable response to the digital subscription packages, rise in circulation revenue and cost containment efforts. The top-line portrayed a marginal growth of 0.6% to $515.2 million during the quarter, following a decline of 0.3% in the first quarter. The ongoing slump in the advertising market continues to weigh upon the company's results. Total advertising revenue slid 6.8% in the second quarter. To mitigate this, the company is diversifying its business and adding new revenue streams. The company is also streamlining its cost structure, strengthening its balance sheet and restructuring its portfolio. The company is offloading assets that bear no direct relation with the core operations in order to re-focus on its core newspapers and pay more attention to its online activities.
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