Thursday, April 22, 2010

Q1 earnings beat forecasts, but shares sink

The company today reported first quarter net income $12.8 million, or 8 cents a share, compared with a year-ago loss of $74.5 million, or 52 cents a share. Overall advertising revenue declines continued to moderate, dropping 6%, according to the NYT Co.'s statement.

The quarter included 3 cents per share in special charges. Overall revenue fell 3.2%, to $587.9 million. Analysts had been expecting earnings of 5 cents a share on revenue of $578 million.

Still, Wall Street beat up shares on a day when overall stock markets were down sharply: NYT's stock recently traded for $12.29, down 45 cents, or 3.5%.

In a crucial measure of future growth, the company said digital advertising sales jumped 18%, significantly offsetting a 12% decrease in print advertising.

NYT Co. continued to benefit from cost reductions over the past 12 months that included layoffs at the flagship New York Times. Employment plunged 18% last year, to 7,665 workers, public documents show.

Related: The Wall Street Journal's story on the results, and NYT's.

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