NEW YORK (TheStreet) -- Shares of New York Times Co. (NYT) are down -7.49% to $12.97 on heavy trading volume after the media company reported that increased investments in digital products and a decline in print advertising contributed to a second quarter earnings profit decline of 21%.
The company today reported $55.7 million in adjusted operating profit for the quarter, which excludes some one-time costs. That amounts to 7 cents a share, falling short of the average analyst estimate of 8.5 cents, as compiled by Thomson Reuters.
The Times reported $70.7 million in adjusted profit in the second quarter of 2013.
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Total revenue decreased 0.6% to $389 million, from $391 million in the period a year earlier, largely because of a 4.1% decline in advertising revenue.
Net income dropped to about $9 million from more than $20 million in the second quarter of 2013.
TheStreet Ratings team rates NEW YORK TIMES CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:"We rate NEW YORK TIMES CO (NYT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
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