Gannett Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Gannett (NYSE:GCI) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Gannett is an international news and information company operating mainly in the realms of publishing, digital and broadcasting.

Gannett Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 88 cents per share, a rise of 22.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 86 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 88 cents during the last month. Analysts are projecting profit to rise by 8.9% compared to last year’s $2.32.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of 56 cents per share against a mean estimate of net income of 54 cents per share.

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A Look Back: In the third quarter, profit rose 33.4% to $133.1 million (56 cents a share) from $99.8 million (41 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.4% to $1.31 billion from $1.27 billion.

Here’s how Gannett traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

gci

Stock Price Performance: Between October 31, 2012 and January 29, 2013, the stock price rose $2.92 (17.3%), from $16.90 to $19.82. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 23, 2012, when shares rose for seven straight days, increasing 6.4% (+$1.07) over that span. It saw one of its worst periods between October 17, 2012 and October 26, 2012 when shares fell for eight straight days, dropping 10.4% (-$1.95) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 7.2% in revenue from the year-earlier quarter to $1.49 billion.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 5.1% in the fourth quarter of the last fiscal year, 2.6% in the first quarter and 2.1% in the second quarter before climbing in the third quarter.

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the fourth quarter of the last fiscal year, the first quarter and the second quarter before snapping that run with a profit increase in the third quarter.

Analyst Ratings: There are mostly holds on the stock with five of nine analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.13 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.14 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.8% to $971.2 million while assets rose 4.7% to $1.1 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)