New York Times (NYSE:NYT) Issues Earnings Results, Beats Estimates By $0.02 EPS

New York Times (NYSE:NYT) issued its earnings results on Wednesday. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.67 by $0.02, FiscalAI reports. New York Times had a return on equity of 22.75% and a net margin of 13.19%.The business had revenue of $762.46 million during the quarter, compared to the consensus estimate of $752.01 million. During the same period last year, the company earned $0.58 EPS. The company’s revenue for the quarter was up 11.2% on a year-over-year basis.

Here are the key takeaways from New York Times’ conference call:

• Positive Sentiment: Q2 revenue grew 11%, adjusted operating profit increased 16% to approximately $155 million, and adjusted diluted EPS rose 19% to $0.69.
• Positive Sentiment: The company added 280,000 net new digital subscribers, reaching approximately 13.4 million; digital-only subscription revenue increased 16.4% to $408 million, supported by subscriber growth and favorable pricing-step-up performance.
• Positive Sentiment: Advertising exceeded expectations, with digital advertising revenue up 20.7% and total advertising revenue up approximately 11.3%; growth was broad-based across the portfolio, though video currently contributes only modestly to advertising growth.
• Neutral Sentiment: The Times is substantially increasing video production and investment, including reporter-led video, visual investigations, and long-form shows, viewing video as a long-term audience and monetization opportunity.
• Negative Sentiment: Adjusted operating costs rose 10%, above guidance, while management warned that major technology platforms are driving less traffic to publishers. Q3 digital subscription growth is expected to moderate to 12%–15%, and first-half free cash flow benefited from seasonal working-capital timing and a largely nonrecurring $60 million tax benefit.

New York Times Stock Performance

NYT stock traded down $0.84 on Friday, reaching $63.93. The company had a trading volume of 2,175,240 shares, compared to its average volume of 2,128,468. New York Times has a 1 year low of $54.10 and a 1 year high of $87.10. The company has a market cap of $10.35 billion, a P/E ratio of 26.61, a PEG ratio of 1.36 and a beta of 0.95. The company’s fifty day moving average is $73.50 and its 200 day moving average is $76.22.

New York Times Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 23rd. Shareholders of record on Wednesday, July 8th were issued a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 1.4%. The ex-dividend date was Wednesday, July 8th. New York Times’s dividend payout ratio (DPR) is 39.48%.

Insider Buying and Selling

In other New York Times news, EVP Jacqueline M. Welch sold 4,000 shares of New York Times stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $74.14, for a total value of $296,560.00. Following the completion of the sale, the executive vice president directly owned 23,873 shares of the company’s stock, valued at approximately $1,769,944.22. The trade was a 14.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David S. Perpich sold 9,000 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $77.06, for a total transaction of $693,540.00. Following the transaction, the director owned 28,469 shares in the company, valued at approximately $2,193,821.14. The trade was a 24.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 17,121 shares of company stock worth $1,310,920. 1.90% of the stock is owned by insiders.

Hedge Funds Weigh In On New York Times

Several hedge funds and other institutional investors have recently modified their holdings of the company. Larson Financial Group LLC lifted its holdings in shares of New York Times by 59.6% during the 3rd quarter. Larson Financial Group LLC now owns 656 shares of the company’s stock valued at $38,000 after acquiring an additional 245 shares in the last quarter. Geneos Wealth Management Inc. boosted its holdings in New York Times by 690.7% in the first quarter. Geneos Wealth Management Inc. now owns 846 shares of the company’s stock valued at $42,000 after purchasing an additional 739 shares during the last quarter. Employees Retirement System of Texas increased its stake in shares of New York Times by 101.6% in the third quarter. Employees Retirement System of Texas now owns 1,006 shares of the company’s stock worth $58,000 after buying an additional 507 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new stake in New York Times in the fourth quarter valued at $71,000. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new position in New York Times during the 2nd quarter worth $116,000. 95.37% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on NYT shares. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $95.00 price objective on shares of New York Times in a research report on Thursday, May 7th. Bank of America decreased their price objective on shares of New York Times from $87.00 to $80.00 and set a “neutral” rating for the company in a research report on Wednesday, June 24th. Guggenheim boosted their target price on New York Times from $63.00 to $70.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Evercore reissued an “outperform” rating and set a $92.00 price objective on shares of New York Times in a research report on Thursday, May 7th. Finally, Wall Street Zen upgraded shares of New York Times from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $82.89.

New York Times News Summary

Here are the key news stories impacting New York Times this week:

• Positive Sentiment: Q2 earnings exceeded expectations. NYT reported earnings of $0.69 per share versus the $0.67 consensus estimate, while revenue reached $762.46 million, ahead of the $752.01 million forecast. Revenue increased 11.2% year over year, supported by digital subscriptions, higher average revenue per user and stronger digital advertising. The New York Times Q2 Earnings Beat Estimates as Digital Ads Rise
• Positive Sentiment: Unusually heavy call-option buying indicates bullish positioning. Investors purchased a high volume of NYT call options, potentially reflecting expectations for a rebound or further gains. Options activity is speculative and does not guarantee sustained buying in the shares. Investors Buy High Volume of New York Times Call Options

New York Times Company Profile

The New York Times Company is a publicly traded media organization best known for publishing The New York Times newspaper and operating the NYTimes.com digital platform. The company produces daily print and digital journalism covering national and international news, opinion pieces, feature stories, and multimedia content. Alongside its flagship newspaper, the firm offers a range of subscription-based services, including Times Cooking, NYT Games, podcasts and newsletters, designed to engage a broad audience of readers and advertisers.

Founded in 1851 by Henry Jarvis Raymond and George Jones, The New York Times has built a reputation for in-depth reporting and investigative journalism.