The McClatchy Company Third Quarter Earnings Sneak Peek

The McClatchy Company (NYSE:MNI) will unveil its latest earnings on Thursday, October 25, 2012. McClatchy is a newspaper company in the United States.

The McClatchy Company Earnings Preview Cheat Sheet

Analysts are projecting profit to rise by 14.3% compared to last year’s 80 cents.

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A Look Back: In the second quarter, profit rose more than fivefold to $26.9 million (31 cents a share) from $4.9 million (6 cents a share) the year earlier. Revenue fell 4.8% to $299.3 million from $314.3 million.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen 94 cents (58%), from $1.62 to $2.56. The stock price saw one of its best stretches over the last year between September 10, 2012 and September 18, 2012, when shares rose for seven straight days, increasing 37.4% (+65 cents) over that span. It saw one of its worst periods between May 18, 2012 and May 30, 2012 when shares fell for eight straight days, dropping 8.8% (-21 cents) over that span.

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 1.18 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 19.1% to $243.9 million while assets rose 5.8% to $255 million.

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 8.4% in the third quarter of the last fiscal year, 5% in fourth quarter of the last fiscal year and 5.1% in the first quarter and then fell again in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $290 million in revenue this quarter, a decline of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $1.22 billion for the year, a decline of 3.9% from last year’s revenue of $1.27 billion.

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

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