Earnings Friday: Will another shoe drop?

Things on my mind as we near Friday morning's release of fourth-quarter earnings, an occasion ripe for Gannett to make news:

• Succession talk: Wall Street analysts may ask CEO Craig Dubow during the 10 a.m. ET conference call about any plans to replace retiring top executive Sue Clark-Johnson.
• Management will likely address further job cuts as part of any severance expenses. Dubow already told Wall Street at a December conference to expect more job losses in 2008.
• Those analysts expect Gannett to report lower fourth-quarter revenue and earnings from last year, Yahoo Finance says. The forecast is for $1.98 billion in revenue, down 10% from a year ago, and $1.27 per share in earnings, down nearly 16%. If the company doesn't at least meet those numbers, there's gonna be trouble in the stock market real fast.
• The growing drumbeat of warnings that the U.S. may have already slipped into a recession that could be long and hard. That would only further pinch revenue expectations for 2008.
• There has been speculation the company is about to announce a big write-down of assets that are no longer worth what the company paid.
• Gannett shares are down 21% since the end of the third quarter, wiping out yet more billions in shareholder equity.
• Management will likely be questioned again on whether a split of newspaper and non-newspaper businesses is in the works. Dubow has been steadfastly opposed to such a move.
• Unlikely, but: If newly named Chief Digital Officer Chris Saridakis is put anywhere on the call, we'll know management is trying to put forward a more digital face.

[Photo: Earth Times]