Why Gannett Shares Are Sliding Today

  • Gannett Co Inc GCI reported a first-quarter FY23 sales decline of 10.6% year-on-year to $668.92 million, missing the consensus of $681.30 million.
  • The media and marketing solutions company reported an adjusted EPS of $0.04, beating the consensus of $(0.06) loss.
  • Declines in digital media year-over-year on a same-store basis and overall weakness across major segments weighed on Q1 results.
  • Advertising and marketing services revenues decreased 9.1% to $340.85 million; Circulation revenues declined 16.4% to $241.29 million.
  • Adjusted EBITDA totaled $62.9 million (-2% Y/Y) with a margin of 9.4%.
  • As of March 31, 2023, the company had cash and cash equivalents of $83.1 million.
  • In Q1, the company made measurable progress in debt reduction, having repaid $37 million. The total principal amount of debt outstanding as of March 31, 2023, was $1.23 billion.
  • "We believe our trends are improving, our digital growth businesses remain strong, our first lien net leverage declined and is on track to achieve our year-end target of less than 2x, and we continue to optimize our capital structure," said Chief Executive Officer Michael Reed.
  • Outlook: Gannett reiterated its FY23 sales guidance of $2.75 billion-$2.80 billion versus the consensus of $2.77 billion.
  • The company raised its 2023 outlook for net income (loss) to be $(15) million-$15 million (prior view $(20) million-$10 million).
  • Price Action: GCI shares are trading lower by 14.3% at $1.6950 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsPenny StocksGuidanceMarketsMoversTrading IdeasGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!