The New York Times Company's Q4 Earnings on Deck: Factors to Note

Core Viewpoint - The New York Times Company (NYT) is expected to report its fourth-quarter 2024 earnings on February 5, with a focus on subscription growth, advertising revenue patterns, and recent strategic initiatives [1] Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $725.1 million, reflecting a 7.2% increase from the previous year [1] - The consensus estimate for earnings per share (EPS) is 74 cents, indicating a 5.7% rise year-over-year [2] - NYT has a trailing four-quarter average earnings surprise of 27.1%, having surpassed EPS estimates by 7.1% in the last quarter [2] Subscription Growth - The company emphasizes subscription growth and digital innovation, which have been key to its sustained progress [4] - Subscription revenues are projected to reach$ 466.3 million, suggesting an 8.3% growth, with digital-only subscription revenues estimated at $333.3 million, indicating a 15.5% increase [7] - The digital-only subscriber count is expected to reach 10.9 million by the end of the fourth quarter, enhancing its market position [8] Advertising Revenue - NYT is reducing reliance on traditional advertising, focusing on digital avenues, with digital advertising revenues estimated at$ 118.3 million, reflecting a 9.8% increase [9] - Management anticipates high-single-digit to low-double-digit growth in digital advertising revenues [9] Challenges - Print subscription revenues are expected to decline, with estimates at $132.9 million, down 6.2%, and print advertising revenues projected to fall 12.9% to$ 49.1 million [10] - Increased spending on product development, marketing, and administrative functions may impact margins, with adjusted operating costs expected to rise by 5-6% for the quarter [10]