The New York Times Co (NYT) on Wednesday forecast lower advertising revenue for the third quarter, as brands trimmed ad spending in light of rising interest rates, decade-high inflation and foreign exchange headwinds.
Total revenue came in at $555.7 million in the quarter ended June 26th, up from $498.5 million in the year-ago period. The median analyst estimate had pointed to revenue of $552.2 million.
The New York Times Co reported a 2.4% slump in digital ad revenue during the second quarter and also said it expected total advertising revenue to be within the range of flat to down low single digits during the third quarter.
Meanwhile, the company added 180,000 net digital subscribers in the latest quarter, compared with 387,000 subscribers added in Q1.
The shares of New York Times Company closed lower for a third consecutive trading session on NYSE on Wednesday. The stock went down 1.06% ($0.33) to $30.81, after touching an intraday low at $29.07. The latter has been a price level not seen since July 15th ($28.60).
The shares of New York Times Company have retreated 36.21% so far this year, following another 6.70% loss in 2021.
Analyst stock price forecast and recommendation
According to TipRanks, at least 3 out of 6 surveyed investment analysts had rated New York Times Co’s stock as “Buy”, while 2 – as “Hold”. The median price target on the stock stands at $35.25.