The firm maintained its "hold" rating on the media company, but said it cut its price target based on concerns regarding the trajectory of the Times' digital subscription revenue growth.
Shares of the New York Times are up 0.31% to $12.93 at the start of trading today.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, NYT has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 94.92% to -$4.44 million when compared to the same quarter last year. In addition, NEW YORK TIMES CO has also vastly surpassed the industry average cash flow growth rate of 2.76%.
- The gross profit margin for NEW YORK TIMES CO is rather high; currently it is at 59.28%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, NYT's net profit margin of 0.44% significantly trails the industry average.
- NEW YORK TIMES CO's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, NEW YORK TIMES CO reported lower earnings of $0.36 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.36).
- You can view the full analysis from the report here: NYT Ratings Report