By: E&P Staff The New York Times Co. announced today that it is lowering its full-year earnings guidance "slightly below" its 2003 earnings to $1.98 per share. While the company experienced advertising revenue growth for the month of August, up 7.8%, September is expected to take away some of those gains.
Leonard P. Forman, executive vice president and CFO, attributes the upcoming softness to the "bad timing of Labor Day," and expenses related to election coverage, editorial product enhancements, and the recent hurricanes. "September's performance to date...has failed to demonstrate the kind of consistent growth we had been looking for as we reach the fall," Forman said in a statement.
Overall, national was up 8.2%, retail grew 5%, and classified revenue increased 7.6% for August. Advertising revenue for The New York Times Media Group increased 6.9% in August, due mostly to the relaunch of "T" Style Magazine and political advocacy advertising related to the Republican National Convention.
Shares for the company fell $.68 cents to $40.12 in late morning trading after falling to $39.95, the lowest level since July 2002, according to a Reuters article.
Most analysts, however, saw this coming. Merrill Lynch issued a note today that said the revised outlook is not "totally surprising, given the company's uneven ad revenue growth this year." The investment firm is keeping its neutral rating.
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