Mass media giant Gannett Co., Inc. (GCI) on Monday posted a sharp uptick in third quarter earnings, beating Wall Street estimates, as big gains in its broadcasting unit added substantially to its bottom line.
The McLean, VA-based company reported third quarter net income of $133.1 million, or 56 cents per share, compared with $99.79 million, or 41 cents per share, in the year-ago period.
Revenue rose 3.4% from last year to $1.31 billion.
On average, Wall Street analysts expected a smaller profit of 53 cents per share, on lower revenue of $1.29 billion.
GCI cited big gains in its broadcasting unit for the earnings beat. The company said revenue in that division jumped 36% from last year, helped by political ad spending as well as ad purchases during the Summer Olympics.
Gannett shares, which have risen 34% year-to-date, were unchanged in premarket trading Monday.
The Bottom Line
Shares of Gannett (GCI) have a 4.47% dividend yield, based on Friday’s closing stock price of $17.90. The stock has technical support in the $14-$16 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price levels.
Gannett Co., Inc. (GCI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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