(Meredith article revised with newspaper industry outlook.)

NEW YORK ( TheStreet) -- Meredith ( MDP - Get Report) shares are rising almost 3% today after the company raised its guidance for the second quarter of 2011.

For the second quarter ended Dec. 31, management expects to report earnings between 85 and 88 cents per share, up from its previously projected range of 75 to 80 cents a share and compared with earnings of 46 cents in the same period a year earlier.

Analysts expect the company to report 79 cents per share for the quarter.

For the fiscal year ending June 30, 2011, Meredith forecasts that the company will report earnings between $2.60 and $2.80 a share, up from its previously guidance range of $2.50 to $2.75.

The media and marketing company is scheduled to present at Citi's 21st annual media conference on Jan 5. While its financial numbers for the last quarter of 2010 have not yet been calculated, Meredith says it has seen an improvement in its advertising revenue performance over the past year.

In 2009 the company suffered a 13% loss in its advertising revenue while in 2010 the company expects to report a gain of 9%.

Research firm Veronis Suhler Stevenson predicts that total advertising revenue among the media sector will grow 6.4% between 2010 and 2014.

Analyst Ed Atorino of Benchmark Capital says Meredith is one of his favorite stocks, and he is happy to see it performing well in the market.

"Their magazine business has turned the corner and their integrated market business has gotten better," Atorino said. He gives Meredith a buy rating with a $41 price target.

Atorino recently released a research note on publishing rival Gannett ( GCI - Get Report) in which he noted an improvement in revenue trends and reduced year-over-year revenue declines in its publishing segment as the advertising market begins to show signs of recovery.

As publishing companies such as Meredith, Gannett and New York Times ( NYT - Get Report) shift their content from physical to digital, they will benefit from the strong advertising trends seen on the Web.

The Internet became the second largest U.S. ad medium in 2010, beating newspapers for the first time since Advertising Age began collecting media company data in 1981.

Meredith is confident that it will continue to see revenue growth, while it finds new ways to cut costs. It also announced plans to reach its readers through a new interactive tablet edition which will launch in spring, 2011.

The company's shares are up 2.85% to around $36.80 on Tuesday. Nearly 827,800 shares have traded hands today compared with the stock's average daily volume of around 660,000. Meredith will release its second-quarter earnings report on Jan. 20 before the market opens.

--Written by Theresa McCabe in Boston.

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