Benchmark Revises Gannett's Estimates

In a research report published earlier today, Benchmark has revised Gannett Inc.'s GCI estimates to reflect management's long-term strategy. According to Benchmark, “Publishing advertising in the US strengthened y/y in November on holiday promotions, but the gain faded in December and was down 7% for the quarter. We believe the downtrend has continued in 1Q12, partly offset by growth in digital and broadcasting revenue, resulting in total revenue off slightly to $1.24 billion vs. $1.25 billion a year earlier. As a result of higher operating expenses including $27 million in strategic initiatives and $7 million in added pension costs, we have lowered our 1Q12 EPS estimate to $0.30 from $0.39, in line with management's forecast of $0.28 to $0.32.” Benchmark maintains its Buy rating and $18 PT on Gannett, which closed yesterday at $15.05.