The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Gannett beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Gross margins increased, operating margins grew, net margins shrank.
Gannett reported revenue of $1.52 billion. The eight analysts polled by S&P Capital IQ wanted to see revenue of $1.50 billion on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $1.39 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 $0.89. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.88 per share. GAAP EPS of $0.44 for Q4 were 10% lower than the prior-year quarter's $0.49 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 48.6%, 500 basis points better than the prior-year quarter. Operating margin was 21.6%, 540 basis points better than the prior-year quarter. Net margin was 6.8%, 160 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 $0.38.
Next year's average estimate for revenue is $5.27 billion. The average EPS estimate is $2.25.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 326 members out of 446 rating the stock outperform, and 120 members rating it underperform. Among 150 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 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 $19.45.
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