Gannett Co Inc Stock Upgraded (GCI)
NEW YORK (
)
-- Gannett
(NYSE:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 136.51% to $210.98 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 11.25%.
- 47.00% is the gross profit margin for GANNETT CO which we consider to be strong. Regardless of GCI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GCI's net profit margin of 8.40% compares favorably to the industry average.
- GANNETT CO's earnings per share declined by 31.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, GANNETT CO reported lower earnings of $1.89 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($2.20 versus $1.89).
- GCI, with its decline in revenue, underperformed when compared the industry average of 20.5%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of GANNETT CO has not done very well: it is down 6.72% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. The company has a P/E ratio of 7.2, above the average media industry P/E ratio of seven and below the S&P 500 P/E ratio of 17.7. Gannett has a market cap of $3.67 billion and is part of the
sector and
industry. Shares are up 6% year to date as of the close of trading on Tuesday.
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