New York Times to Miss 1st-Quarter Estimates

New York Times Co. warned investors that its first-quarter earnings would fall well below analysts’ expectations as an economic slowdown exerts a drag on advertising revenues. But the company said it still expected to meet its target of 10% to 15% growth in full-year earnings per share, thanks to tighter controls on costs and added revenue from circulation because of two recently announced price increases. New York Times said it now expects earnings per share of 35 cents to 38 cents in the first quarter, down from 47 cents a year ago. Analysts surveyed by First Call/Thomson Financial had expected 45 cents. The company said it expects advertising revenue for its newspapers to rise 1% to 3% for the entire year, with much of the growth coming in the second half of the year. The company had forecast growth of 5% to 7%. However, the company said it expected additional operating income of $30 million to $32 million in the year from recent price increases for the New York Times and the Boston Globe. Shares of New York Times fell $2.50 to close at $43 on the New York Stock Exchange.