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New York Times Stock Rises As Q3 Results Beat Estimates

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Shares of New York Times Co. (NYT) are rising more than 12 percent in pre-market activity on Thursday after the company's third-quarter results beat analysts' estimates. The results reflect growth in digital subscription, digital advertising and other revenues.

The company's third-quarter net income attributable to common declined to $24.98 million or $0.15 per share from $32.33 million or $0.20 per share in the year-ago period.

The latest quarter's results include a gain of $3.6 million after tax or $0.02 per share from a pension liability adjustment. The prior-year quarter's results include a gain of $6.1 million or $0.10 per share from joint ventures related to the sale of the remaining assets of Madison Paper Industries.

Adjusted earnings per share from continuing operations were $0.15, compared with $0.12 in the year-ago period.

On average, five analysts polled by Thomson Reuters expected earnings of $0.11 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 8.2 percent to $417.35 million from $385.64 million in the same period last year. Analysts had a consensus revenue estimate of $408.54 million.

Subscription revenues rose 4.5 percent, primarily due to growth in the number of subscriptions to the company's digital-only products. Revenue from the company's digital-only subscription products, which include the company's news product, as well as its Crossword and Cooking products, increased 18.1 percent to $101.2 million.

Advertising revenues increased 7.1 percent and other revenues increased 49.3 percent. Digital advertising revenue increased 17.3 percent.

The company said it added 203,000 total net new digital-only subscriptions in the quarter. It now has more than 3 million digital-only subscriptions and more than 4 million total subscriptions.

Looking ahead to the fourth quarter, New York Times forecasts total subscription revenues to decrease in the low to mid-single digits, with digital-only subscription revenue expected to increase in the high-single digits compared with the year-ago period.

Total advertising revenues in the fourth quarter are expected by the company to decrease in the mid-single digits, with digital advertising revenue expected to increase in the mid-single digits. The outlook is on a 13-week 2018 to 14-week 2017 basis.

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