The 10-second takeaway
For the quarter ended March 25 (Q1), Gannett missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Gannett logged revenue of $1.22 billion. The seven analysts polled by S&P Capital IQ anticipated revenue of $1.24 billion on the same basis. GAAP reported sales were 2.6% lower than the prior-year quarter's $1.25 billion.
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 $0.34. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share on the same basis. GAAP EPS of $0.28 for Q1 were 24% lower than the prior-year quarter's $0.37 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 40.7%, 200 basis points worse than the prior-year quarter. Operating margin was 11.5%, 340 basis points worse than the prior-year quarter. Net margin was 5.6%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $5.30 billion. The average EPS estimate is $2.18.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 323 members out of 444 rating the stock outperform, and 122 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Gannett a green thumbs-up, and 32 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 $16.72.
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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.