Gannett Co. Earnings: Here’s Why the Stock is Falling Now

Gannett Co., Inc. (NYSE:GCI) delivered a profit and beat Wall Street’s expectations, BUT 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 3.61%.

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Gannett Co., Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.82% to $0.37 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Rose 1.59% to $1.24 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gannett Co., Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.35. It missed the average revenue estimate of $1.24 billion.

Quoting Management: Gracia Martore, president and chief executive officer, said, “We are very pleased to report a significant increase in earnings per share this quarter. Our all access content subscription model’s success benefited our local domestic publishing revenue for the fourth consecutive quarter. Core advertising growth and a substantial increase in retransmission revenue contributed to improving results in Broadcasting while Digital segment results continued to reflect CareerBuilder’s growing market position.”

Key Stats (on next page)…

Revenue decreased 18.46% from $1.52 billion in the previous quarter. EPS decreased 58.43% from $0.89 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.59 to a profit $0.6. For the current year, the average estimate has moved down from a profit of $2.25 to a profit of $2.21 over the last ninety days.

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

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