NEW YORK (TheStreet) -- Shares of Gannett (GCI) - Get Gannett Co., Inc. Report were tumbling 16.06% to $8.31 on heavy trading volume late Thursday afternoon after the company reported weaker-than-expected earnings for the 2016 third quarter.
Before the market open, the McLean, VA-based owner of USA Today posted adjusted earnings of 6 cents per share, below analysts' estimates of 19 cents per share.
Revenue rose 10.1% to $772.3 million from last year and was above analysts' expectations of $752.4 million.
During the same quarter a year ago, Gannett earned 43 cents per share on revenue of $701.2 million.
"While we saw signs of improvement late in the third quarter, we were disappointed with our performance, and as we expected, it was our most challenging period in 2016," CEO Robert Dickey said in a statement.
"We have implemented initiatives that will result in $10 million of additional cost savings in the fourth quarter to align our cost structure with the current industry environment," he added.
For the fourth quarter, the newspaper company expects revenues to rise between 14% and 16% year-over-year.
More than 2.30 million of the company's shares changed hands so far today vs. its average 30-day volume of 788,519 shares.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by a few notable weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
Among the areas that are negative, one of the most important has been unimpressive growth in net income over time.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GCI