Gannett’s Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Gannett (NYSE:GCI) will unveil its latest earnings on Monday, July 16, 2012. 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 53 cents per share, a decline of 8.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 56 cents. Between one and three months ago, the average estimate moved down. It has risen from 52 cents during the last month. Analysts are projecting profit to rise by 2.8% compared to last year’s $2.19.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at profit of 34 cents per share against an estimate of net income of. The company also topped expectations in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, profit fell 24.6% to $68.2 million (28 cents a share) from $90.5 million (37 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.6% to $1.22 billion from $1.25 billion.

Stock Price Performance: From June 11, 2012 to July 10, 2012, the stock price rose $1.94 (15.4%), from $12.60 to $14.54. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 2, 2012, when shares rose for six straight days, increasing 12.5% (+$1.65) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight days, dropping 26.1% (-$3.55) over that span.

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

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 2.2% in the second quarter of the last fiscal year, 3.5% in third quarter of the last fiscal year and 5.1% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 20.4% over the past four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.05 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 1.19 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 6.7% to $1 billion while liabilities rose by 5.4% to $951 million.

Wall St. Revenue Expectations: Analysts predict a decline of 0.8% in revenue from the year-earlier quarter to $1.32 billion.

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

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