Earnings Report: May 10, 2023

 Earnings Report: May 10, 2023

    Today is a lot lighter with only 3 of my holdings reporting earnings. Disney is a big name to watch this afternoon, and another one of my favorites The Trade Desk reports this afternoon. I will summarize the earnings releases and give my opinion of what I think.

The New York Times Company (NYT)- New York Times reported earnings before the market opened this morning. The stock declined during the trading session. The company beat on bottom line but missed on the top line. The CEO left some remarks on the quarter saying that the company made steady progress on their substantial subscription strategy. They are also seeing future growth in subscriptions as well. The company was also able to implement its value-based pricing strategy, they were able to slow cost growth for the third quarter in a row through disciplined cost management. New York Times was able to add 190,000 new digital subscribers in the quarter, which brought the total up to 9.7 million. The advertising unit is still facing some challenges and those will likely continue in the short-term. The company looks to be on the right path to obtain its goal of being a larger and more profitable company. 

My Thoughts: I understand the decline here, as the advertising unit didn't perform as well as many were hoping. This seems to be a trend with a lot of companies that have advertising revenue. With the economic challenges swarming companies, the cost cutting is becoming more apparent and they are limiting their spending on advertising. I like where they are going with the subscription growth and I truly believe they are one of the best newspaper services in the world. It shows testament when they add 190,000 new subscribers in one quarter. I like the future of this company and I am a shareholder because of its dominance in its space. The growth strategy looks to be in a good place and when the economy start cooperating the advertising revenue will add a boost to the company. 

The Trade Desk, Inc. (TTD)- The Trade Desk reported earnings after the market closed this afternoon. The stock is moving a tad bit higher, as the company beat on both top and bottom line compared to estimates. The company is a technology company that empowers buyers of advertising. The CEO left some wonderful remarks on the company’s performance during the quarter. The company had an outstanding performance and proves that it is a leader in the digital advertising market. The Trade Desk was able to grow revenue at 21%. The shift from linear to connected TV is continuing to accelerate. The Trade Desk continues to innovate and diversify which will deliver premium value and gain share of the market. Customer retention rates remained over 95% as it has maintained that level for the past nine years. The Trade Desk repurchased $293 million worth of shares in the first quarter. The company has announced a transition in the CFO due to the current man at the helm leaving for another role. Overall, a wonderful quarter for the company as they continue to blow investors of their feet with performance. 

My Thoughts: This is my second favorite holding, right after Axon. The company is a market dominator and continues to grow at a favorable pace. This was a wonderful quarter for the company and the results look continually better. They expectations are already set high and the company continues to beat quarter after quarter. I invested this company at its peak, but have continually added in after really believing in the thesis the company has. The growth is insane and the innovation continues to impress. I think the retention rate is something to brag about with a lot of competition trying to steal market share. I think being founder-led also drives the business higher. I love this company and the stock will show some solid upside over my holding of the company. Keep on keeping on The Trade Desk. 

The Walt Disney Company (DIS)- Disney reported earnings after the market closed this afternoon. The stock is seeing a steady decline in after-hours trading. The company beat on the top line, but missed on the bottom line. Disney seems to facing a major turnaround with Bob Iger trying to fix the mess that has been made. Revenues saw a growth of 13% for the quarter and 10% for the six months. Bob Iger was pleased with the accomplishments the company made this quarter which includes an increase in the financial performance of the streaming business. This proves that the company is on the right track to realign the company to growth and success. Disney is focusing on a more efficient, coordinated, and streamlined approach to its operations. The subscribers did see a tiny tick down and missed estimates. I think the company is going to restructure and combine its services to make it easier and more attractive to consumers. Overall, the company is headed in the right direction, but Bob Iger has a lot of work in front of himself.

My Thoughts: Disney is one of those staple stocks that you buy and hold for generations. It has been around for lifetimes. It got all sorts of messed up with parks shutting down during the pandemic and the streaming business just getting started up. The former CEO Bob Iger came in and is trying to save the day for the company and get back to its strategy of growth and success. They are also in some legal battles with the governor of Florida over beliefs and things the company is doing. I think the company has a good point as the legal scuffle is apprehending the company from growing. The company is messed up for sure, but I have faith in Iger to get the job done. I think the streaming business will play itself out and the parks will start to see more traffic and fully recover from the years off. I am long Disney and you should be too.

Thank you for reading.

All information is from the companies earnings releases.