Gannett's stock just closed at $12.85 a share, down $1.24, or 8.8%, as Wall Street expressed unhappiness with today's third-quarter financial report.
The company said earnings had jumped 36%, but the $1.31 billion in revenue was basically unchanged from last year. Also of concern, President and Chief Operating Officer Gracia Martore provided little clear guidance on where the company is headed in the current, fourth quarter, during a conference call with stock analysts.
GCI traded as low as $12.47 earlier today on very high sales volume: Nearly 16 million shares changed hands vs. a daily average of 4.1 million, according to Google Finance. Major stock indexes were divided: The Dow Jones Industrial Average closed down less than 1%. The S&P 500 rose less than 1%.
GCI is now down 2.6% from a year ago vs. a 7.3% gain in the S&P 500.
Friday, October 15, 2010
11 comments:
Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."
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As I've been posting, Broadcast had a GREAT quarter, political ad revenue will run heavy thru the Nov. 2 elections. But the postings here about the Print side of GCI really concern me. Seems like Print is in disarray, with no revenue turn-around in sight. Maybe GCI should split itself in two, and spin off Print, unlocking the value in Broadcast and Digital. I'm not making a jab at the Print siders who post here -- in fact, some of you have expressed the desire for Print to be split out or spun off and come under the control of a newspaper-centric media company. Are you still in favor of that?
ReplyDelete6:03 Belo did that, and it has been a great success. I would be in favor of splitting off the community papers as well, leaving USA Today to fight for itself instead of draining funds from the newspapers and broadcast properties.
ReplyDeleteAfter November 2 look for Broadcast revenues to suck wind. There are no Olympics, No more elections in our broadcast markets and no catalyst revenue growth
ReplyDeleteLet's just say that Gannett is DEAD. Gracia can spew all the bullshit on the conference call, but obviously the stock market isn't going for her arrogant and obnoxious attitude.
This is dead money.
A spin off won't occur anytine soon. Here's why:
ReplyDelete1.Broadcasting is too small to make it on it's own.
2. The only thing keeping digital alive is all the money being funneled in to it by print. If any of you financial gurus want to know why. Ask any one who does ordering of print ads. A whole lot of money is being sliced off and accrued to individual sites digital revenue.
3.Read between the lines. Print as a whole isn't taking a nose dive. USCP is actually making money. Specifically it's USAT and corporate that are trashing the numbers.
Gannett is ripe for a takeover.
Gracia has more important things to do that deal with analysts. Like what? Who knows? If she's that bothered dealing with Wall Street, she should consider taking the company private and loading up on even more debt.
ReplyDeleteCommunity newspapers provide a lot of digital content. There is something wrong if Gannett is not able to transfer that local connection into new profits.
ReplyDeleteYou people really don't get it. Dubow put his spin on everything during the conference call, didn't give any pertinent responses to questions about the future direction of the company, turned his nose at analysts, insulted 78,000 working stiffs in the company with his total gibberish, then went out to the Chevy Chase Country Club for a lunch of filet mignon and broiled crab cakes and 18 holes of golf. The company paid for his club membership and meals and then he stiffed the poor caddy. ""I am going to treat you like I do the slaves in our corporation -- like shit,'' Dubow said. ""Excuse me now, I have to go home and count my $7 million salary for transforming Gannett into the Titanic.''
ReplyDeleteCraig is still using a cane to walk so I doubt he was at the golf course. But he and Gracia were evasive with the analysts and did not talk about print advertising revenue at USAT until someone asked them about it.
ReplyDeleteDubow and Martore are out their depth. They're products of Gannett's ass-kissing management style and have no idea how to lead the company or where it should be led.
ReplyDeleteI doubt that either care, beyond ego satisfaction, considering the riches they've stockpiled for themselves and their cronies.
Gannett needs inventive minds at the helm? Are there any in sight? And will the Board of Directors finally take action, or is it also content to live off today's profits at the expense of the future?
The directors, quite frankly, are either in retirement mode or out of their element. If they had wanted to send a message that they're disappointed in management's efforts the past few years, they would have done so in executives' wallets. Instead, they reward managers by providing bonuses, restricted stock and stock options. If they had more skin in the game, and treated their board seats like they're supposed to, mainly, representing shareholders, they would do things very differently. There isn't one director critical of company policy and management shenanigans on this board. Shameful.
ReplyDeletewhen i see craig speak or attend meetings, i have to wonder how anyone could have named him ceo. innarticulate, evasive,unable to show where the company is going instead of babbling concepts. no affinity or appreciation for journalists. tone deaf when it comes to listening to employees. has he actually paid attention to the recent "transformation" at usa today? has he had one frank discussion with rank and file workers and how ineptly the process is being handled? does he know only a handful of managers know what's happening?
ReplyDelete