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
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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
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