Time Inc. (TIME) Stock Declines on Planned Reorganization
NEW YORK (TheStreet) -- Shares of Time Inc. (TIME) are down 1.22% to $16.26 this afternoon as the company announces a reorganization.
The New York-based magazine publisher and media company plans to restructure to generate more revenue from non-print sources including videos, live events, advertising and social media content distribution.
The greater reorganization is expected "shortly," the Wall Street Journal reports.
Newsstand and print advertising sales for Time Inc. publications fell 4% to $270 million in the first quarter, and circulation declined 5% to $238 million during the same period.
The company has been making moves to grow its digital and non-print sectors. Time Inc. recently acquired websites like HelloGiggles.com and is set to debut a People/Entertainment Weekly streaming network in the fall.
In its most recent quarter, ended March, Time Inc. recorded a net loss of $10 million on revenue of $690 million. Time Inc. forecasts revenue gains between 1% and 5% for 2016, the first significant revenue improvement in five years.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
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 and expanding profit margins. However, TheStreet Ratings finds weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: TIME
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.