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New York Times has recently released its earnings results last week which failed to hit mostly of its estimated market data for the third quarter. The results came with a miss on revenues and notable growth on its Digital Subscriptions.

New York Times revealed that its Total subscription revenue improved to at least $246.6 million for the period which is a 13.6% upsurge generally. This was backed up by a 46.3% increase, to $85.7 million in digital-only subscription revenue.

The media company also saw its paid digital-only subscriptions at 154,000 for the said quarter. This is a 59.3% increase if to compare in a year-over-year basis. New York Times had its digital-only subscribers 2.48 million for the period. In further details, the company had 105,000 news subscriptions plus 26,000 for its crossword subscriptions. The Times' new "Cooking" digital product also had 23,000 subscriptions for the period.

As for the Non-news digital subscriptions, figures revealed that the data doubled in the main three quarters of 2017 compare with the year-over-year data, to $9.8 million.  

Total advertising revenue of the media company experienced a decline by 9%, to $113.6 million, attributable to the recent 21.7% tumble in print advertising which was at $64.4 million. This was somewhat counterbalanced by an upsurge of 11% to $49.2 million. in digital advertising.

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The New York Times is an American newspaper based in New York City.

For the other revenue figures, the report revealed a 17.7% to $25.4 million growth, due to the affiliate referral revenue of The Wirecutter – a recent acquisition focused on product reviews.

In the third quarter as well, the media company lessened its production costs by 4.3%, to $150.0 million, and had its selling, general, and administrative costs unchanged at the level of $184.5 million. Additionally, New York Times had its severance costs decline by roughly $11 million year over year, while evading the inducement of hammering on new expenditures.

This has certainly gave the company the power to maintain its 6% revenue improvements. Operating income of $33.0 million advanced more than twice of the result of the comparable quarter of $9.0 million for the quarter.

Trading Performance

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The New York Times has recently faced a series of bearish trend since its earnings release. The dramatic downtrend marked the stock as oversold as it reached the deepest level of its Relative Strength Index since last year. From the recent trade, the stock declined 0.86% more to 0.15 points while its RSI dropped further down towards 20.29 making it oversold at the time being.

The decline continued in its Coppock Curve which had an indication of -10.14. Since this is a negative region, a sell would be advised for the stock.

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