Gannett Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Gannett (NYSE:GCI) will unveil its latest earnings on Monday, October 15, 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 profit of 53 cents per share, a rise of 20.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 50 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 53 cents during the last month. Analysts are projecting profit to rise by 4.7% versus last year to $2.23.

Past Earnings Performance: Last quarter, the company reported net income of 56 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Stock Price Performance: Between July 16, 2012 and October 9, 2012, the stock price rose $3.20 (21.8%), from $14.69 to $17.89. The stock price saw one of its best stretches over the last year between September 7, 2012 and September 17, 2012, when shares rose for seven straight days, increasing 10.3% (+$1.66) over that span. It saw one of its worst periods between July 2, 2012 and July 12, 2012 when shares fell for eight straight days, dropping 4.1% (-61 cents) over that span.

A Look Back: In the second quarter, profit fell 20.9% to $119.9 million (51 cents a share) from $151.5 million (62 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.1% to $1.31 billion from $1.33 billion.

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 3.5% in the third quarter of the last fiscal year, 5.1% in fourth quarter of the last fiscal year and 2.6% in the first quarter and then fell again in the second quarter.

Heading into this earnings announcement, net income has dropped 20% on average for the last four quarters.

Wall St. Revenue Expectations: Analysts predict a rise of 1.6% in revenue from the year-earlier quarter to $1.29 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.14 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.

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

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