The McClatchy Company (NASDAQ:MNI) posted lower net income in the second quarter compared with a year-earlier period. McClatchy Company is a newspaper company in the United States with 30 daily newspapers and approximately 50 non-dailies in 29 markets across the country.
The McClatchy Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for the publisher fell to $4.9 million (6 cents per share) vs. $7.3 million (9 cents per share) a year earlier. This is a decline of 32% from the year earlier quarter.
Revenue: Fell 8.1% to $314.3 million from the year earlier quarter.
Actual vs. Wall St. Expectations: MNI beat the mean analyst estimate of 3 cents per share. Analysts were expecting revenue of $315.2 million.
Quoting Management: Commenting on McClatchy’s second quarter results, Gary Pruitt, chairman and chief executive officer, said, “Advertising revenues were down 9.4% in the second quarter of 2011 compared to a decline of 11.0% in the first quarter versus the same periods in 2010. We saw some improvement in revenue trends in the second quarter of 2011, helped in part by retail advertising associated with the later Easter holiday in April. Still it is clear that the weak economic recovery is having an impact in the markets we serve. “We continued to see growth in digital advertising revenues, and in particular digital-only advertising. Our digital results include both digital sales bundled with print and digital advertising sold on a stand-alone basis. Our bundled sales have suffered with declines in print, but we were pleased to see an increase of 9.0% in second quarter digital-only sales compared to the 2010 quarter. Total digital advertising, including both bundled and digital-only sales, increased 1.6% in the second quarter of 2011 to $47.7 million. Digital advertising now represents 20.2% of McClatchy’s total advertising revenue.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.
Revenue has fallen in the past four quarters. Revenue declined 9.5% to $303.7 million in the first quarter. The figure fell 5.9% in the fourth quarter of the last fiscal year from the year earlier and dropped 5.7% in the third quarter of the last fiscal year from the year-ago quarter.
Competitors to Watch: Gannett Co., Inc. (NYSE:GCI), GateHouse Media, Inc. (GHSE), The New York Times Company (NYSE:NYT), Lee Enterprises, Inc. (NYSE:LEE), A.H. Belo Corporation (NYSE:AHC), Media General, Inc. (NYSE:MEG), Sun Times Media Group, Inc. (SUTMQ), The E.W. Scripps Company (NYSE:SSP), Daily Journal Corporation (NASDAQ:DJCO), AOL (NYSE:AOL), Interactive Corp (NASDAQ:IACI), McGraw-Hill (NYSE:MHP), Pearson (NYSE:PSO), Washington Post (NYSE:WPO) and News Corporation (NASDAQ:NWSA).
(Source: Xignite Financials)