The New York Times Company (NYT), the diversified media conglomerate, is slated to report its fourth-quarter and full-year 2013 results on Feb 6, 2014. In the last quarter, it posted a positive surprise of 75.0%. Let’s see how things are shaping up for this announcement.
Factors this Past Quarter
New York Times Company delivered better-than-expected third-quarter 2013 results. Increased digital subscription packages, higher circulation revenue and effective cost management were the driving factors behind the sturdy results. The rise in circulation revenue was mainly driven by the company’s digital subscription initiatives and increase in print circulation price at The Times.
Earnings Whispers?
Our proven model does not conclusively show that New York Times Company is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here as you will see below.
Zacks ESP: ESP for New York Times Company is 0.00% since the Most Accurate estimate stands at 16 cents, which is in line with the Zacks Consensus Estimate.
Zacks Rank: New York Times Company’s Zacks Rank #3 (Hold) has little impact on the predictive power of ESP because the Zacks Rank #3 when combined with 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements:
ConAgra Foods, Inc. (CAG) has an Earnings ESP of +1.54% and a Zacks Rank #2 (Buy).
Lorillard, Inc. (LO) has an Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).
Mondelez International, Inc. (MDLZ) has an Earnings ESP of +2.27% and a Zacks Rank #3 (Hold).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment