Publisher Gannett buoyed by upgrade as acqusitions bolster earnings

A nudge upwards in its earnings forecasts for the year sent investors flocking back into shares of publisher Gannet Co Inc (NYSE:GCI).

First quarter results were a touch ahead of expectations with revenues of US$773.5mln up by 17% on a year earlier and even more on an underlying basis.

The USA Today publisher has been heavily restructuring its print operation to combat the onset of digital and after cost cuts of US$17.8mln, there was a net loss for the quarter of US$2.1mln.

Underlying profits were a better than expected US$91.7mln (US$97.5mln).

Robert  Dickey, chief executive, said the pressures from declines in print advertising and circulation revenues in the US and UK were offset by acquisitions, cost reductions and local digital advertising revenues, particularly mobile.

For 2017 overall, Gannet expects sales of between US$3.15bn/US$3.22bn but underlying profits are now seen as US$30mln better at between US$355mln – US$365mln.

Shares rose 7% in pre-market trading.

Story by ProactiveInvestors