Here’s Why Newspaper Stocks are Crashing Now
Newspaper company Gannett (NYSE:GCI) reported Q3 earnings per share of $0.44 this morning, missing Wall Street estimates by $0.01. Revenue came in at $1.27 billion, down 3.5% year-over-year.
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The company’s results dragged down shares of other companies with newspaper holdings such as The New York Times (NYSE:NYT), The McClatchy Company (NYSE:MNI), The E.W. Scripps Company (NYSE:SSP), and News Corp (NASDAQ:NWSA).
A slowing economy, consequently falling advertising revenues, and weakening circulation have all unfavorably impacted the outlook for print media companies. The entire sector has been trying to figure out how to reinvent itself as the web becomes the centerpiece of media consumption.
Gannett (NYSE:GCI) is trading at $10.05 today, down 8.14%. Shares are down 14.86% in one year. The stock’s trading range for the year is between $8.28 and $18.93.
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