NYT – Market expectations are for material improvements in Uniform ROA, but management has concerns about revenue, growth, and costs

• • The New York Times Company (NYT:USA) currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 23.1x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about revenue, growth, and costs
  • Specifically, management may have concerns about worse than expected advertising revenue for the fourth quarter, and may be concerned about the challenges in the print advertising market. Additionally, they may lack confidence in their ability to successfully improve conversion through integrating their Cooking product into their different bundles, and may also lack confidence in their ability to meet digital growth targets. Furthermore, they may have concerns about their ability to sustain cost improvements, and may be exaggerating their success with the election cohort in terms of retention and churn