2 Media Companies Lighting Up Trading Screens After Earnings

McGraw-Hill Companies Inc. (NYSE:MHP) reported its results for the third quarter. Net income for the book publisher fell to $365.6 million ($1.21 per share) vs. $379.9 million ($1.23 per share) a year earlier. This is a decline of 3.8% from the year earlier quarter. Revenue fell 2.5% to $1.91 billion from the year earlier quarter. MHP fell short of the mean analyst estimate of $1.23 per share. It fell short of the average revenue estimate of $2.04 billion.

“Overall, the business performed well despite challenging market conditions in global credit markets and historically low funding levels in the U.S. elementary-high school market. We are still on track for another year of growth in 2011, but we remain cautious over the balance of the year,” said Harold McGraw III, chairman, president, and chief executive officer of The McGraw-Hill Companies. “We now expect to achieve diluted earnings per share from continuing operations of $2.81 to $2.86 compared to adjusted earnings per share of $2.68 in 2010.”

Competitors to Watch: Moody’s (NYSE:MCO), Reed Elsevier plc (NYSE:RUK), Reed Elsevier NV (NYSE:ENL), Thomson Reuters Corp. (NYSE:USA) (NYSE:TRI), Gannett Co., Inc. (NYSE:GCI), Meredith Corporation (NYSE:MDP), Scholastic Corporation (NASDAQ:SCHL), Pearson PLC (NYSE:PSO), News Corporation (NASDAQ:NWSA), and The New York Times Company (NYSE:NYT).

New York Times Co. (NYSE:NYT) climbed to a profit in the third quarter and beat Wall Street’s expectations in the process. Reported a profit of $15.7 million (10 cents per diluted share) in the quarter. New York Times Co. had a net loss of $4.3 million or a loss 3 cents per share in the year earlier quarter.Revenue fell 3.1% to $537.2 million from the year earlier quarter. NYT reported adjusted net income of 5 cents per share. By that measure, the company beat the mean estimate of 3 cents per share. Analysts were expecting revenue of $540.9 million.

“This quarter we continued to execute on our strategy to transform our business, said Janet L. Robinson, president and chief executive officer, The New York Times Company. “We made significant progress in developing a robust digital subscription revenue stream, reduced our operating costs, meaningfully improved our liquidity through the early repayment of high-interest debt and tripled our initial investment on the sale of a portion of our stake in Fenway Sports Group. And despite a challenging advertising environment, our operating profit grew reflecting our strong cost performance and growth in circulation revenues, which rose three percent.”

Competitors to Watch: Gannett Co., Inc. (NYSE:GCI), The McClatchy Company (NYSE:MNI), News Corporation (NASDAQ:NWSA), Media General, Inc. (NYSE:MEG), GateHouse Media, Inc. (GHSE), Lee Enterprises, Inc. (NYSE:LEE), The E.W. Scripps Company (NYSE:SSP), A. H. Belo Corporation (NYSE:AHC), Daily Journal Corporation (NASDAQ:DJCO), and Pearson PLC (NYSE:PSO).