Gannett Co. Inc. Earnings Cheat Sheet: Four Straight Quarters of Profit Drops

S&P 500 (NYSE:SPY) component Gannett Co. Inc. (NYSE:GCI) reported its results for the third quarter. Gannett is an international news and information company operating mainly in the realms of publishing, digital and broadcasting.

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Gannett Earnings Cheat Sheet for the Third Quarter

Results: Net income for the publisher fell to $99.8 million (41 cents per share) vs. $101.4 million (42 cents per share) a year earlier. This is a decline of 1.6% from the year earlier quarter.

Revenue: Fell 3.5% to $1.27 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GCI reported adjusted net income of 44 cents per share. By that measure, the company fell short of mean estimate of 45 cents per share. Analysts were expecting revenue of $1.27 billion.

Quoting Management: Gracia Martore, president and chief executive officer, said, “All of our business segments continued to deliver consistent profitability in the third quarter. These results, amid continued market volatility, reflect the strength of Gannett’s iconic local and national brands and our relentless commitment to continuously enhancing the news, information and services we offer every day to the communities we serve. Importantly, digital revenues continued to show positive momentum in all of our business segments and were up 10 percent company-wide compared to last year, reflecting the success we are having in offering content and solutions across all platforms.” Martore continued, “We remain focused on aligning expenses with areas of opportunity, while leveraging our great brands, strong balance sheet and world-class talent to position Gannett for long-term revenue growth. I’m convinced we have the right strategy and team in place to continue to remake Gannett in the digital age.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 2.2% to $1.33 billion in the second quarter. The figure fell 5.4% in the first quarter from the year earlier and dropped 1.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last three quarters. In the second quarter, net income fell 22.5% from the year earlier, while the figure fell 22.8% in the first quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 58 cents versus a mean estimate of net income of 57 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 73 cents a share to 71 cents over the last sixty days. The average estimate for the fiscal year is $2.12 per share, down from $2.18 ninety days ago.

Competitors to Watch: The E.W. Scripps Company (NYSE:SSP), The New York Times Company (NYSE:NYT), The McClatchy Company (NYSE:MNI), News Corporation (NASDAQ:NWSA), Media General, Inc. (NYSE:MEG), Lee Enterprises, Inc. (NYSE:LEE), GateHouse Media, Inc. (GHSE), Journal Communications, Inc. (NYSE:JRN), A. H. Belo Corporation (NYSE:AHC), and Meredith Corporation (NYSE:MDP).

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(Source: Xignite Financials)