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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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 of Motley 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.