Time 4Q results miss analysts' estimates, stung partly by weaker newsstand and ad revenue

MarketsAssociated Press

Time Inc.'s fourth-quarter results missed Wall Street's view, dragged down in part by softer newsstand and advertising revenue.

The New York-based company earned $145 million, or $1.32 per share, for the period ended Dec. 31. Earnings, adjusted for non-recurring gains, came to 73 cents per share.

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The results missed Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 78 cents per share.

The quarter's restructuring and severance costs totaled $28 million.

The publisher of Time and People magazines posted revenue of $895 million, also falling short of Street forecasts. Analysts expected $901.7 million, according to Zacks.

Newsstand revenue fell 12 percent mostly on weaker demand and fewer special issues at People magazine. Advertising revenue dropped 8 percent, while print and other advertising revenue declined 10 percent. Circulation revenue — which includes subscription, newsstand and other revenues, fell 8 percent. Subscription revenue declined 7 percent.

One bright spot was digital advertising revenue, which rose 2 percent.

For the year, Time reported an adjusted profit of $1.58 per share on revenue of $3.28 billion.

The company anticipates 2015 revenue will be down 3 percent to 6 percent.

Shares of Time fell $1.15, or 4.6 percent, to $23.80 in midday trading.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TIME at http://www.zacks.com/ap/TIME

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Keywords: Time, Earnings Report