This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tribune Faces New Test

The outlook remains inky for big newspaper companies.

Tribune (TRB), Gannett (GCI) and McClatchy (MNI - Get Report) have been much in the news of late, what with investor discontent swirling. Shares of newspaper companies have fallen sharply in recent years in the face of shrinking growth prospects.

This week the companies will get a chance to show that the reported death of the newspaper business has been exaggerated. Still, analysts aren't holding their breath.

Analysts are looking for Gannett, which is due to report Wednesday morning, to earn $1.31 per share, down from $1.37 a year ago, on $2 billion in revenue. On Thursday, Tribune will be expected to earn 56 cents per share, down from 60 cents last year, on $1.5 billion in revenue. McClatchy targets are set at 88 cents a share, down from 94 cents last year, on $338 million in revenue.

Wall Street will focus most of all on Tribune, given the turmoil at the Chicago company.

The Chicago Cubs owner, which has large TV station and newspaper holdings, including the Los Angeles Times, has just completed a large tender offer even as a key stakeholder is calling for a split of the company. Deep-pocketed prospective buyers of the Times, including reported interest from the likes of David Geffen and Ron Burkle, have emerged, but Tribune management says it isn't selling.

Tribune just completed a $2 billion Dutch auction through which it bought back 15% of outstanding stock at $32.50 per share. The program was derided by 12% owner the Chandler family trusts, which is applying pressure on management for a full scale break-up of operations.

To be sure, more investors are beginning to question the logic of owning disparate local media holdings. These skeptics believe cross-media ownership synergies have largely failed to materialize.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GCI $14.36 -1.60%
MNI $0.87 -2.70%
AAPL $93.65 -0.66%
FB $101.93 0.92%
GOOG $681.92 -0.32%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs