Gannett Earnings: First Annual Increase in Company-Wide Revenue Since 2006
Gannett Co., Inc. (NYSE:GCI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.51%.
Gannett Co., Inc. Earnings Cheat Sheet
Results: Net income decreased -11.92% to $103 million (44 cents per diluted share) in the quarter versus a net gain of $116.94 million in the year-earlier quarter.
Revenue: Rose 9.53% to $1.52 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Gannett Co., Inc. reported adjusted net income of 89 cents per share. By that measure, the company beat the mean analyst estimate of $0.88. It beat the average revenue estimate of $1.49 billion.
Quoting Management: Gracia Martore, President and Chief Executive Officer, said, “We are proud of our strong operating results this quarter with growth in revenue and margin expansion driving strong cash flow. This caps an extremely productive year in which we successfully implemented our strategy to position Gannett for success in the digital era. For the year, we achieved our first year-over-year increase in company-wide revenue since 2006. During the fourth quarter and for the full year, our Broadcasting business delivered record revenue and profitability. Our television stations significantly increased market share this year reflecting the value of their content and format in gaining new viewers while retaining their loyal base. Not to be outdone, local domestic publishing circulation revenue also increased for the third straight quarter driven by the success of our all access content subscription model. We are meeting or exceeding the revenue and operating profit goals we had for the all access content subscription model. Total digital revenue across Gannett increased 29 percent and represented 25 percent of total revenue…
…Our strategy is gaining momentum, our investments are bearing fruit and we are achieving the results we expected. We enter 2013 with our businesses performing well and poised for even greater success going forward. We remain confident we are well positioned to achieve our goals and to continue delivering on our promise to return increased value to shareholders,” Martore said.
Revenue increased 16.1% from $1.31 billion in the previous quarter. Net income decreased 22.6% from $133.08 million in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.38 and has not changed. For the current year, the average estimate has moved up from a profit of $2.26 to a profit of $2.33 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)