New York Times Co.’s stock (NYSE: NYT) experienced a 3% decline in early trading on Wednesday, following the company’s release of its fourth quarter financial results. Although the newspaper group exceeded profit estimates, its revenue fell slightly below expectations.
Financial Performance
The company achieved a net income of $109.9 million, or 66 cents per share, compared to $70.8 million, or 43 cents per share, in the same period last year. Adjusted per-share earnings were 70 cents, surpassing the FactSet consensus of 61 cents.
Revenue for the fourth quarter reached $676.2 million, up from $667.5 million a year ago. Despite this growth, it fell just below the FactSet consensus of $680.0 million.
Mixed Advertising Revenue
While digital ad revenues experienced a decline of 3.7%, other revenue streams saw positive growth. Licensing and Wirecutter referral revenues contributed to a 10% increase in other revenue.
Future Outlook
New York Times Co. anticipates total subscription revenue to rise between 7% and 9% in 2024. Additionally, the company expects digital-only subscription revenue to increase by 11% to 14%.
Dividend Increase
Reflecting its strong performance, the company decided to raise its quarterly dividend by 2 cents to 13 cents per share. This increase will apply to shareholders of record as of April 2, with the new payment scheduled for April 18.
Market Performance
Over the past year, New York Times Co.’s stock has risen by 32%, outperforming the S&P 500, which saw a gain of 19%.