Gannett Beats on EPS But GAAP Results Lag
Gannett (NYS: GCI) reported earnings on Jan. 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Gannett met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Gannett recorded revenue of $1.39 billion. The six analysts polled by S&P Capital IQ hoped for a top line of $1.39 billion. Sales were 5.1% lower than the prior-year quarter's $1.46 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.72. The nine earnings estimates compiled by S&P Capital IQ forecast $0.69 per share on the same basis. GAAP EPS of $0.72 for Q4 were 32% lower than the prior-year quarter's $0.72 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 43.6%, 470 basis points worse than the prior-year quarter. Operating margin was 16.2%, 730 basis points worse than the prior-year quarter. Net margin was 8.4%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $5.30 billion. The average EPS estimate is $2.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 325 members out of 449 rating the stock outperform, and 124 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Gannett a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gannett is outperform, with an average price target of $15.06.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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