Gannett (GCI) Misses Q2 EPS by 3c

Gannett (NYSE: GCI) reported Q2 EPS of $0.30, $0.03 worse than the analyst estimate of $0.33. Revenue for the quarter came in at $748.8 million versus the consensus estimate of $768.47 million.

Outlook

Given the continued successful implementation of the company's acquisition strategy, the company has revised its annual guidance and now expects year over year revenue growth for the second half of 2016 of between 7% and 9%. As a reminder, the third quarter tends to be a seasonally slower revenue quarter and the fourth quarter is generally the best revenue quarter of the year. Margins will remain under pressure, particularly in the third quarter, driven by the impact of recently acquired businesses, in part reflecting incremental investments being made to accelerate the integration of these businesses and achieve the expected synergies, as well as some other technology related investments. Also, because of our foreign currency exposure in the U.K., we estimate that the recent appreciation of the U.S. dollar relative to the Sterling, will result in a reduction in reported adjusted EBITDA of approximately $6 million for the second half of 2016.

Additionally for the second half of 2016, the company expects the following:

• Capital expenditures of $30-$40 million, not including real estate projects.
• Depreciation and amortization of approximately $65 million.
• Effective tax rate of 34-35%.

For earnings history and earnings-related data on Gannett (GCI) click here.

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