New York Times Reports Mixed Q4 Earnings On Higher Subscriptions, Lower Ad Revenues; Adds 300k Digital Subscribers
Portfolio Pulse from Vandana Singh
New York Times Co (NYSE:NYT) reported Q4 2023 earnings with an adjusted EPS of $0.70, surpassing the consensus of $0.58, but missed sales expectations with $676.22 million against a consensus of $679.24 million. The company added 300,000 digital-only subscribers, reaching a total of 10.36 million subscribers. Digital advertising revenues fell by 3.7%, while subscription revenues from digital products grew by 7.2%. NYT increased its quarterly dividend to $0.13. The company is involved in a legal action against OpenAI and Microsoft Corp (NASDAQ:MSFT) over copyright infringement claims. NYT expects Q1 2024 digital subscription revenue growth of 11%-14% and forecasts a decrease in total advertising revenues.
February 07, 2024 | 2:48 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
NYT reported higher than expected Q4 EPS but missed on sales, added 300k digital subscribers, and increased its dividend. It's involved in a legal action against OpenAI and MSFT.
The mixed earnings report with a beat on EPS but a miss on sales, combined with the increase in digital subscribers and dividend, presents a complex picture for NYT's short-term stock performance. The ongoing legal action adds uncertainty.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Microsoft Corp is involved in a legal action with The New York Times over copyright infringement claims related to the use of NYT's content to train AI technologies.
The legal action against Microsoft by NYT introduces a potential risk factor for MSFT's stock in the short term, as legal challenges can lead to financial and reputational damages.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50