New York Times shares fall the most in 39 months on Wednesday despite earnings beat, digital subscriber growth

New York Times third-quarter earnings, reported on Wednesday, outstripped market expectations, as the media company attracted more advertisers and subscribers for its digitally published content. Revenue in its print business, however, shrank.

Shares of New York Times Company closed lower for a third consecutive trading session on Wednesday. It has also been the steepest daily loss since July 29th 2014. The stock went down 5.76% ($1.10) to $18.00, after touching an intraday low at $17.90, or a price level not seen since August 18th ($17.80).

In the week ended on October 29th the shares of the media company lost 0.51% of their market value compared to a week ago, which marked the second drop in the past nine weeks.

The stock has retreated 5.76% so far during the current month, following a 2.55% drop in October. The latter has been the largest monthly loss since October 2016.

For the entire past year, the shares of New York Times Company retreated 0.89%. However, the stock has gained 35.34% so far in 2017.

Net income attributable to the shareholders was reported at $32.3 million during the quarter ended on September 24th, meaning the company earned $0.20 per share.

At the same time, earnings per share from continuing operations, excluding special items, were reported at $0.13 during the latest quarter, which exceeded the median analyst estimate ($0.08 per share).

154 000 subscribers were added to a plethora of websites during the quarter, which increased the total number of subscribers on-line to 2.5 million.

On the other hand, New York Times total revenue grew at a slower-than-expected rate, 6.1% year-on-year, to reach $385.6 million during the quarter ended on September 24th. In comparison, analysts on average had expected $389 million in revenue.

Revenue from digital advertising surged 11% to $49.2 million, while revenue from print advertising dropped 20.1% to $64.4 million during the third quarter.

According to CNN Money, the 4 analysts, offering 12-month forecasts regarding New York Times’ stock price, have a median target of $17.00, with a high estimate of $22.00 and a low estimate of $11.00. The median estimate is a 5.56% drop compared to the closing price of $18.00 on November 1st.

The same media also reported that 4 out of 5 surveyed investment analysts had rated New York Times’ stock as “Hold”, while 1 – as “Sell”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the New York Times stock are presented as follows:

R1 – $18.17
R2 – $18.34
R3 (Range Resistance – Sell) – $18.51
R4 (Long Breakout) – $19.02
R5 (Breakout Target 1) – $19.61
R6 (Breakout Target 2) – $19.86

S1 – $17.83
S2 – $17.66
S3 (Range Support – Buy) – $17.49
S4 (Short Breakout) – $16.98
S5 (Breakout Target 1) – $16.39
S6 (Breakout Target 2) – $16.14

By using the traditional method of calculation, the weekly levels of importance for New York Times Company (NYT) are presented as follows:

Central Pivot Point – $19.35
R1 – $19.80
R2 – $20.25
R3 – $20.70
R4 – $21.15

S1 – $18.90
S2 – $18.45
S3 – $18.00
S4 – $17.55