Falling revenue did not prevent The McClatchy Company (NYSE:MNI) from reporting a profit boost in the second quarter. McClatchy is a newspaper company in the United States.
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The McClatchy Company Earnings Cheat Sheet
Results: Net income for The McClatchy Company rose to $26.9 million (31 cents per share) vs. $4.9 million (6 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Fell 4.8% to $299.3 million from the year-earlier quarter.
Quoting Management: Commenting on McClatchy’s second quarter results, Pat Talamantes, McClatchy’s president and CEO, said, “Advertising revenues were down 5.7% in the second quarter. Despite economic headwinds, we were encouraged to see sequential improvement in advertising trends in the second quarter compared to the first quarter of 2012 when ad revenues were down 6.8%. Not only did we experience calendar switches for certain holidays, but we continue to see the trend of advertisers consolidating their marketing budgets around specific holidays. This was evident in the second quarter around the Easter, Mother’s Day and Fourth of July holidays, with the impact clearly evident in the revenue results in each month. Advertising revenues were down 8.2% in April, 0.5% in May and 7.9% in June.
Revenue has fallen in the past four quarters. Revenue declined 5.1% to $288.3 million in the first quarter. The figure fell 5% in the fourth quarter of the last fiscal year from the year earlier and dropped 8.4% in the third quarter of the last fiscal year from the year-ago quarter.
The company reported a profit last quarter, following a quarter of being in the red. In the fourth quarter of the last fiscal year, the company booked a net loss of $42 million, or a loss of 49 cents per share.
For the fiscal year, the average estimate has moved up from 47 cents a share to 68 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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