NEW YORK (TheStreet) -- Shares of Gannett Co. (GCI - Get Report) are up 4.79% to $33.24 after the newspaper and broadcast company beat analyst expectations for the second quarter, reporting earnings per share of 67 cents, up 15.5% from 58 cents from the same quarter last year, and beating the consensus estimate of 64 cents.
Revenue was up 12.1% year-over-year to $1.46 billion for the quarter, below the consensus estimate of $1.48 billion.
Broadcasting revenue, which accounts for more than a quarter of Gannett's total, rose 13.4% to $398.3 million which benefited from the acquisition of Belo's TV stations.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 14.7%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 357.52% to $166.00 million when compared to the same quarter last year. In addition, GANNETT CO has also vastly surpassed the industry average cash flow growth rate of 6.62%.
- 45.53% is the gross profit margin for GANNETT CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.21% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: GCI Ratings Report
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