Oklo shares rise as US considers nuclear plant push

Oklo, Inc. OKLO is slated to report first-quarter 2025 results on May 13, after market close.

The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of 11 cents per share, suggesting a strong improvement from a loss of $4.79 reported in the prior-year quarter. The bottom-line estimate, however, has deteriorated from nine cents in the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

OKLO’s earnings missed the Zacks Consensus Estimate in the last reported quarter.

Earnings Whisper for OKLO Stock

Our proven model does not conclusively predict an earnings beat for OKLO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

OKLO has an Earnings ESP of -4.76% and a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank stocks here.

OKLO’s Q1 Results: Key Factors to Consider

During the January-March 2025 quarter, Oklo signed some landmark agreements, made a strategic acquisition and achieved some milestones, which are likely to get reflected in its upcoming results.

In March, the company acquired Atomic Alchemy, an industry forerunner in radioisotope production. These radioisotopes are used in healthcare, research and defense. Atomic Alchemy’s special VIPR Reactor technology will help Oklo build a strong supply chain in the United States. This deal also supports OKLO’s work in fuel recycling and nuclear energy businesses.

In the same month, the company entered into an Interface Agreement with Idaho National Laboratory (INL), to ensure its strict adherence to environmental regulations throughout the site investigation process, and also finalized a Memorandum of Agreement with the U.S. Department of Energy (DOE), as part of its progress toward deploying its first commercial powerhouse in Idaho.

In February, Oklo revealed that it has joined the DOE’s Voucher Program to evaluate and test advanced structural materials for its Aurora powerhouse. This participation is likely to have strengthened OKLO’s path to commercial deployment for its Aurora powerhouse.

In the same month, the company signed a Memorandum of Understanding with Lightbridge Corporation to explore co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at Oklo’s proposed site. This collaboration is expected to have enhanced OKLO’s fuel recycling capabilities, streamlined supply-chain efficiencies and supported its mission to deliver cost-effective, carbon-free energy.

In January, Oklo partnered with RPower to deliver a phased power model for data centers, replacing diesel with natural gas by using RPower natural gas generators and ultimately transitioning to a supply of clean, scalable energy from its Aurora powerhouses.

With the nuclear fuel sector receiving significant funding in recent times, the aforementioned achievements are likely to have benefited Oklo. Further updates are expected along with the first-quarter results.

The company is yet to generate revenues, so its regular operating expenses, associated with developing its next-generation Aurora powerhouses, will continue to put downward pressure on its bottom line, thereby resulting in quarterly losses.

Price Performance & Valuation

Shares of Oklo have surged 48.8% over the past year, outperforming the Zacks Alternative-Energy industry’s return of 32.2% as well as the broader Zacks Oils-Energy sector’s decline of 13.5%. It has also outpaced the S&P 500’s surge of 7.9% in the same period.

The New York Times Company NYT continued its decent performance in the first quarter of 2025. The company's adjusted earnings per share were 41 cents, which surpassed the Zacks Consensus Estimate of 35 cents. The figure marked an increase from the year-ago adjusted earnings of 31 cents. Total revenues of $635.9 million came marginally ahead of the Zacks Consensus Estimate of $635 million and increased 7.1% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

NYT added approximately 250,000 net digital-only subscribers in the quarter under review compared with the end of the preceding quarter, propelled by multiple products across its portfolio.

The New York Times Company consistently grew its digital-only average revenue per user (ARPU), which increased to an impressive $9.54 in the first quarter from $9.21 in the year-ago period. This rise in ARPU can be attributed to subscribers transitioning from promotional pricing to higher rate plans and price hikes for tenured non-bundle subscribers.

NYT Subscription Revenues Show Strong Y/Y Growth

Subscription revenues of $464.3 million increased 8.2% year over year. Subscription revenues from digital-only products jumped 14.4% to $335 million. This reflects an increase in bundle and multi-product revenues and a rise in other single-product subscription revenues, partly offset by a decline in news-only subscription revenues. Print subscription revenues dropped 5% to $129.2 million due to decreased domestic home-delivery revenues.

The company ended the quarter with 11.66 million subscribers across its print and digital products, including 11.06 million digital-only subscribers. Of the 11.06 million subscribers, 5.76 million were bundle and multi-product subscribers.

Management envisions second-quarter total subscription revenue growth of 8-10%, with digital-only subscription revenues anticipated to rise by 13-16%.

The New York Times Company Price, Consensus and EPS Surprise

The New York Times Company price-consensus-eps-surprise-chart | The New York Times Company Quote

A Look at The New York Times Company’s Advertising Revenues

Total advertising revenues of $108.1 million rose 4.2% from the prior-year period. Digital advertising revenues increased 12.4% to $70.9 million due to areas of strong marketer demand and new advertising supply.

Meanwhile, print advertising revenues fell 8.5% to $37.2 million in the quarter under review. The metric decreased mainly in the luxury and entertainment categories.

For the second quarter, the company expects flat to a low-single-digit increase in total advertising revenues. It foresees a high-single-digit increase in digital advertising revenues.

Other Key Highlights of NYT’s Q1 Results

Affiliate, licensing and other revenues jumped 3.7% year over year to $63.6 million in the quarter under review due to higher Wirecutter affiliate referral revenues and licensing revenues. NYT foresees a mid-single-digit increase in affiliate, licensing and other revenues in the second quarter.

Adjusted operating costs rose 4.9% to $543.2 million in the quarter. Management anticipates adjusted operating costs to increase 5-6% in the second quarter.

The total adjusted operating profit grew 21.9% to $92.7 million in the quarter under review, whereas the adjusted operating margin expanded 10 basis points to 15.3%.

NYT’s Segment Performances

The New York Times Group’s revenues increased 5.7% year over year to $588.9 million. Subscription revenues rose 7.5% to $431.5 million due to growth in subscription revenues from digital-only products, partly offset by a decline in print subscription revenues. Advertising revenues fell 0.4% to $97.7 million due to lower revenues from print advertising, partly mitigated by higher revenues from digital advertising.

Revenues totaled $47.6 million in The Athletic segment, up 27.9% year over year. Subscription revenues rose to $32.7 million from $27.6 million in the first quarter of 2024 due to increased subscribers with The Athletic. Advertising revenues jumped to $10.4 million from $5.7 million in the first quarter of 2024 due to higher revenues from display advertising.

Sneak Peek Into NYT’s Financial Health

The New York Times Company ended the quarter with cash and marketable securities of $902.3 million, reflecting a decrease of $9.5 million from $911.9 million as of Dec. 31, 2024.

The company incurred capital expenditures of about $8 million in the quarter. Management envisions capital expenditures of $40 million for 2025.

In the quarter, the company repurchased 1,180,186 shares of its Class A common stock for an aggregate amount of $58.9 million. As of May 2, 2025, about $443 million remained available and authorized for further repurchases.

We note that shares of this Zacks Rank #3 (Hold) company have advanced 6.9% in the past three months compared with the industry’s rise of 5.9%.

Stocks Worth Looking

StoneCo Ltd. STNE, a leading provider of financial technology and software solutions, currently sports a Zacks Rank #1 (Strong Buy). STNE has a trailing four-quarter average earnings surprise of 5.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for StoneCo’s current financial-year sales and EPS implies growth of 9.8% and 2.2%, respectively, from the year-ago period’s actuals.

Affirm Holdings, Inc. AFRM, which operates a payment network in the United States, Canada and internationally, presently sports a Zacks Rank #1. AFRM has a trailing four-quarter earnings surprise of 84.1%, on average.

The Zacks Consensus Estimate for Affirm Holdings’ current financial-year sales and EPS implies growth of 37.1% and 96.4%, respectively, from the year-ago period’s actuals.

Twilio Inc. TWLO, the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, currently carries a Zacks Rank #2 (Buy). TWLO has a trailing four-quarter earnings surprise of 15.4%, on average. 

The Zacks Consensus Estimate for Twilio’s current financial-year revenues and earnings per share (EPS) calls for growth of 7.8% and 21.3%, respectively, from the year-ago period’s reported numbers.

This article originally published on Zacks Investment Research (zacks.com).

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