Gannett Expects 3Q Earnings To Top Estimates

ANDREW VANACORE

NEW YORK (AP) — Gannett Co., the largest newspaper publisher in the U.S., said third-quarter earnings should far outpace expectations despite a narrow shortfall in revenue, as layoffs and falling newsprint costs help offset weak advertising sales.

Tuesday's announcement gave a sharp boost to Gannett's and other newspaper stocks.

Gannett, which publishes 84 daily U.S. newspapers including USA Today and operates 23 television stations, anticipates earnings of 25 cents to 31 cents per share when it reports results Oct. 19. That would mark a sharp drop from 69 cents in the year-ago period, but expectations for newspaper publishers have declined drastically.

Adjusting to exclude $26 million to $32 million for severance expenses and other special charges, the company says earnings per share should fall between 39 cents and 42 cents. On that basis, analysts project 28 cents per share, according to a Thomson Reuters poll.

In a statement, Gannett Chief Financial Officer Gracia Martore said advertising declines have moderated but she did not offer specific figures.

The McLean, Va.-based company expects sales of $1.31 billion to $1.32 billion, a drop of at least 20 percent from the year before, when Gannett reported sales of $1.64 billion. Analysts expected $1.38 billion, on average.