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.

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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.

Key Stats:

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.

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