Gannett Co. Earnings: Here’s Why Investors are Not Happy Now

Gannett Co., Inc. (NYSE:GCI) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2%.

Gannett Co., Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.57% to $0.58 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Decreased 0.31% to $1.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gannett Co., Inc. reported adjusted EPS income of $0.58 per share. By that measure, the company met the mean analyst estimate of $0.58. It missed the average revenue estimate of $1.33 billion.

Quoting Management: Gracia Martore, president and chief executive officer, said, “We are very pleased to report solid revenue growth in our Broadcasting and Digital segments as well as our fourth consecutive quarter of year-over-year circulation revenue growth overall in our Publishing segment. Earnings per share were higher in the quarter as our strategic initiatives, particularly our content subscription model and digital offerings, continued to gain momentum and positively impact our results.”

Key Stats (on next page)…

Revenue increased 5.27% from $1.24 billion in the previous quarter. EPS increased 56.76% from $0.37 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.46. For the current year, the average estimate is a profit of $2.21, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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