The 10-second takeaway
For the quarter ended Sep. 23 (Q3), Gannett beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins increased across the board.
Gannett tallied revenue of $1.31 billion. The seven analysts polled by S&P Capital IQ predicted revenue of $1.29 billion on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $1.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.56 for Q3 were 37% higher than the prior-year quarter's $0.41 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 44.9%, 190 basis points better than the prior-year quarter. Operating margin was 16.9%, 120 basis points better than the prior-year quarter. Net margin was 10.2%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.43 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $5.26 billion. The average EPS estimate is $2.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 321 members out of 443 rating the stock outperform, and 122 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 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 $17.17.
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