Gannett Earnings: Newsprint in the Face, Stock Drops
S&P 500 (NYSE:SPY) component Gannett Co., Inc. (NYSE: GCI) reported a lower net income in first quarter, missing analysts’ estimates. Gannett Co., Inc. is an international news and information company operating mainly in the realms of publishing, digital and broadcasting.
Gannett Co Earnings Cheat Sheet for the First Quarter
Results: Net income for the publisher fell to $90.5 million (37 cents/share) vs. $117.2 million (49 cents/share) a year earlier. A decline of 22.8% from the year earlier quarter.
Revenue: Fell 5.4% to $1.25 billion YoY.
Actual vs. Wall St. Expectations: GCI fell short of the mean analyst estimate of 41 cents/share. Estimates ranged from 41 cents per share to 42 cents per share.
Quoting Management: “During the quarter, we continued to focus on enhancing content distribution on every platform and sales across platforms. The success of those efforts resulted in a 12 percent increase in company-wide digital revenue,” said Craig Dubow, chairman and chief executive officer.
Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 30.3% from the year earlier while the figure increased 37.5% in third quarter of the last fiscal year, 177.3% four quarters ago and 51.3% five quarters earlier.
Over the last five quarters, revenue has fallen an average of 3.2% year over year. The biggest drop came in the most recent quarter, when revenue fell 5.4% from the year earlier quarter.
Competitors to Watch: News Corporation (NASDAQ:NWSA), The McClatchy Company (NYSE:MNI), Meredith Corporation (NYSE:MDP),The New York Times Company (NYSE:NYT), AOL, Inc. (NYSE:AOL), and Google (NASDAQ:GOOG).
Today’s Performance: Shares of GCI are trading at $14.73, down 0.88% from the previous close.