The 10-second takeaway
For the quarter ended Dec. 25 (Q4), McClatchy beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved significantly.
Margins expanded across the board.
McClatchy tallied revenue of $351.4 million. The two analysts polled by S&P Capital IQ predicted a top line of $347.8 million on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $369.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.50. The four earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS of $0.49 for Q4 were 172% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.4%, 280 basis points better than the prior-year quarter. Operating margin was 26.8%, 230 basis points better than the prior-year quarter. Net margin was 12.0%, 800 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $0.57.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 141 members out of 262 rating the stock outperform, and 121 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give McClatchy a green thumbs-up, and 45 give it a red thumbs-down.
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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.