The New York Times company today warned its quarterly earnings would fall short of analysts' expectations amid a weak advertising market and special charges.
The media company, which recently announced plans to cut 190 jobs, including reductions at its flagship New York Timesnewspaper, said it would take charges in the second quarter to account for severance costs as well as stock-based compensation expenses.
In a statement, the company said it expected diluted earnings per share to be in the range of 38 cents to 42 cents, down from 50 cents a share in the period a year ago.
Analysts pegged the company's second-quarter earnings at 46 cents a share, though some on Wall Street have recently indicated they expected New York Times to lower its outlook.
Shares of New York Times, which also publishes the Boston Globeand the International Heard Tribune, among others, rose 41 cents to $31.17 on the New York Stock Exchange.
The warning follows cautious statements this week by other big newspaper companies, including Knight Ridder, which also warned of a quarterly earnings shortfall.
Newspapers have been struggling with declining circulation, a lack of young readers, competition from new media and a weak advertising climate. Shares of the group are down about 10 per cent so far this year.
In the case of New York Times, it said it now expects advertising revenue growth to be in the "low- to mid-single digits" as compared to a previous forecast of growth in the "mid-single digits."