The New York Times stock surges 12% on earnings beat driven by digital subscription growth

• The New York Times reported fiscal fourth quarter earnings on Thursday that exceeded Wall Street's expectations.
• Shares of the publisher jumped as much as 12% in early trading.
• Subscription growth increased 35% from the fourth quarter of 2018, partially offsetting declining advertising revenue.
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Shares of The New York Times surged as much as 12% Thursday morning after the publisher reported fiscal fourth quarter 2019 earnings that exceeded analysts expectations.

The jump pushed shares of the publisher to their highest price in 15 years in early trading Thursday.

Here's what the publisher reported, versus what analysts surveyed by Bloomberg expected:

• Adjusted earnings per share: 43 cents reported, versus 29 cents (expected)
• Revenue: $508.4 million reported, versus $505.1 million (expected)

The New York Times had 232,000 net new subscriptions in the fourth quarter, a 35% jump from a year earlier. The year was also the best for the publisher's digital subscription business since it launched nine years ago, CEO Mark Thompson said in a press release.

The publisher last year set a goal of reaching 10 million total subscribers by 2025. Its total subscribers reached 5.3 million at the end of the fourth quarter, meaning it's more than halfway there.

On a call with analysts Thursday, Thompson pushed back against claims that the publisher has experienced a "Trump bump," or flood of digital subscriptions because of the president that would be in jeopardy if there is a change in the White House next year.

It is "a faulty analysis to suggest that the only thing that was really going on from 2016, 17 to today was a kind of encouraged front bump," Thompson said. He added that the biggest success of 2019 for The Times was the adaptation of Modern Love as a drama series.

The gain in subscriptions helped to partially offset a decline in advertising revenue seen in the fourth quarter. In addition, the publisher said that subscription revenues are expected to increase in the mid-single digits in 2020, compared with the first quarter of 2019. Total advertising revenues are expected to decline about 10% in the first quarter of 2020.

The New York Times has gained 6% year-to-date through Wednesday's close.