Why Lee Enterprises, Incorporated Shares Popped

Why Lee Enterprises, Incorporated Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lee Enterprises, Incorporated are up more than 8% after peaking at a 10% gain in early trading today. Investors reacted favorably to the company's preliminary earnings report, which showed an encouraging improvement in digitally sourced revenue despite weak results otherwise.

So what: Lee Enterprises reported revenue of $177.4 million for its fiscal first quarter, a 4% decline from the year-ago quarter. Adjusted quarterly net earnings rose to $0.24 per share from $0.20 a year ago, although without adjustments, Lee's EPS was $0.22, down from $0.28 a year ago.

Retail ad revenues were down 4%, and classified ad revenues were down 9%, but digital advertising and marketing revenues were up 10% year over year, and now comprise 15% of Lee's total ads-and-marketing revenues. Total digital revenue was up 13% year over year, and now comprises 12% of all revenues.

Now what: This isn't exactly an encouraging report, all things considered. The growth in mobile revenue hasn't offset all other declines, and online advertising is a difficult way to make money for even the best news publications. After a near triple during the past year, this little stock looks like it might have gotten too far ahead of itself.

Want more news and updates? Add Lee Enterprises to your Watchlist now.

Looking for sustainable growth stocks for the long haul?
They said it couldn't be done. But David Gardner has proved them wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

The article Why Lee Enterprises, Incorporated Shares Popped originally appeared on Fool.com.

Alex Planes has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published