New York Times stock rallies after big earnings beat, subscription growth helps revenue rise above forecasts

Shares of New York Times Co.
NYT,
+8.40%
surged 1.6% in premarket trading Tuesday, after the digital and print news company reported second-quarter earnings that beat expectations, as growth in subscription revenue offset flat advertising revenue. Net income fell $46.6 million, or 28 cents a share, from $61.8 million, or 37 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to 38 cents from 28 cents and was well above the FactSet consensus of 21 cents. Revenue grew 6.3% to $590..85 million, above the FactSet consensus of $580.6 million, as subscription revenue rose 6.8% to $409.6 million, advertising revenue edged up 0.3% to $117.8 million and other revenue jumped 16.1% to $63.5 million. Digital-only subscription revenue rose 13% to $269.8 million while print subscription fell 3.5% to $139.8 million as home-delivery revenue fell 3.9%. The stock has run up 25.8% year to date through Monday, while the S&P 500
SPX,
-0.62%
has gained 17.7%.