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Publishing Stocks to Post Earnings on Oct 27: MDP, NEWM, GCI
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After encountering the rough tides arising from the sluggishness witnessed in emerging markets such as China and Brazil, and the fears of challenging economic/political conditions in Europe post Brexit, the U.S. economy looks much steady now, and is set for the reporting cycle. The Q3 earnings season is underway, with results from 116 S&P 500 members, as of Oct 21, and is on track to be the first quarter to show positive earnings growth after five quarters of back-to-back declines.
Per the latest Earnings Trends report as of Oct 21, out of the 116 S&P 500 companies that have come up with their quarterly numbers, approximately 80.2% have posted positive earnings surprises, while 62.9% beat top-line expectations. According to the report, earnings for these S&P 500 companies that have reported so far are up 3.3% from the same period last year, while revenues have increased 1.8%.
Further, the report projects that earnings for the total S&P 500 companies will improve 0.1% from the year-ago period, and total revenue will grow 1.5%. Well, as the earnings season gets into groove, the scenario would become much clearer.
The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, seven are expected to witness an earnings decline in the third quarter, with Autos, Oil/Energy and Transportation being a big drag. The Consumer Staples sector is displaying strength with total earnings expected to advance 2.2% and revenue growth of 1.3%.
As of Oct 21, 21.9% of the total number of S&P 500 companies in this sector reported their results, wherein 85.7% have surpassed earnings estimates, while 57.1% beat revenue estimates. While earnings jumped 4.7% year over year, revenues dipped 0.9%.Publishing forms a part of the Consumer Staples sector.
Publishing Industry: A Synopsis
The U.S. publishing industry has long been grappling with declining advertising revenues, and the global economic meltdown has only worsened the situation. The downturn in the publishing industry witnessed over the last few years aggravated, as print readership declined, with more readers opting for free online news, thereby making the print-advertising model increasingly irrelevant.
The publishing companies are transforming their business models to better position themselves in a multi-platform media universe. According to industry experts, publishing companies are focusing more on mobile devices, online advertising based on user experience and personalized content to lower their dependence on traditional advertising revenues. Further, they are streamlining their cost structure, strengthening their balance sheet and restructuring portfolio.
Sneak Peek at Three Publishing Stocks
Among publishing stocks lined up to report on Oct 27, let’s take a sneak peek at three companies.
Meredith Corporation , one of the leading media and marketing companies with interests in publishing, broadcasting, integrated marketing and interactive media, is slated to report first-quarter fiscal 2017 results. Management had earlier projected first-quarter earnings per share in the range of 70–75 cents. The Zacks Consensus Estimate for the quarter currently stands at 72 cents.
Favorable advertising trends in the digital section and recent acquisitions continue to positively influence the company’s performance. Meredith is focused on bolstering advertising revenues, primarily in the digital space. Additionally, it is increasingly concentrating on brand licensing, marketing services and eCommerce. The company anticipates strong political advertising cycle as well as higher retransmission revenues and robust digital advertising revenue growth to drive its performance in fiscal 2017. However, with advancing technology, the print media is on a decline. Shift to online is likely to put enormous pressure on Meredith’s magazine portfolio. Though the company is expanding its digital presence, it will take time to complete the metamorphosis. (Read: Meredith to Report Q1 Earnings: What's in Store?)
Meredith has a Zacks Rank #3 (Hold). However, our criteria of earnings beat has been let down by an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Another publishing stock, New Media Investment Group Inc. is scheduled to report third-quarter 2016 numbers tomorrow. The Zacks Consensus Estimate for the quarter currently stands at 17 cents. This publisher of locally-based print and online media in the U.S. has a favorable combination of a positive Earnings ESP of 35.29% and a Zacks Rank #3, which make us reasonably confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diversified media conglomerate, Gannett Co., Inc. (GCI - Free Report) is also slated to report third-quarter 2016 results. The company is realigning its cost structure and streamlining its operations to increase efficiencies and safeguard its earnings and cash flows from dwindling print advertising revenues. Additionally, it is focused on improving its digital business and has undertaken strategic acquisitions. However, management had earlier stated that margins will remain under pressure in the third quarter due to investments made. Moreover, we observed that the company’s top line has fallen short of the Zacks Consensus Estimate in the last five quarters. Further, the company anticipates headwinds in the form of unfavorable foreign currency translations.
Gannett carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter stands at 17 cents. In the previous quarter, the company reported in-line earnings. (Read: Gannett Q3 Earnings: What's in Store for the Stock?)
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Publishing Stocks to Post Earnings on Oct 27: MDP, NEWM, GCI
After encountering the rough tides arising from the sluggishness witnessed in emerging markets such as China and Brazil, and the fears of challenging economic/political conditions in Europe post Brexit, the U.S. economy looks much steady now, and is set for the reporting cycle. The Q3 earnings season is underway, with results from 116 S&P 500 members, as of Oct 21, and is on track to be the first quarter to show positive earnings growth after five quarters of back-to-back declines.
Per the latest Earnings Trends report as of Oct 21, out of the 116 S&P 500 companies that have come up with their quarterly numbers, approximately 80.2% have posted positive earnings surprises, while 62.9% beat top-line expectations. According to the report, earnings for these S&P 500 companies that have reported so far are up 3.3% from the same period last year, while revenues have increased 1.8%.
Further, the report projects that earnings for the total S&P 500 companies will improve 0.1% from the year-ago period, and total revenue will grow 1.5%. Well, as the earnings season gets into groove, the scenario would become much clearer.
The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, seven are expected to witness an earnings decline in the third quarter, with Autos, Oil/Energy and Transportation being a big drag. The Consumer Staples sector is displaying strength with total earnings expected to advance 2.2% and revenue growth of 1.3%.
As of Oct 21, 21.9% of the total number of S&P 500 companies in this sector reported their results, wherein 85.7% have surpassed earnings estimates, while 57.1% beat revenue estimates. While earnings jumped 4.7% year over year, revenues dipped 0.9%.Publishing forms a part of the Consumer Staples sector.
Publishing Industry: A Synopsis
The U.S. publishing industry has long been grappling with declining advertising revenues, and the global economic meltdown has only worsened the situation. The downturn in the publishing industry witnessed over the last few years aggravated, as print readership declined, with more readers opting for free online news, thereby making the print-advertising model increasingly irrelevant.
The publishing companies are transforming their business models to better position themselves in a multi-platform media universe. According to industry experts, publishing companies are focusing more on mobile devices, online advertising based on user experience and personalized content to lower their dependence on traditional advertising revenues. Further, they are streamlining their cost structure, strengthening their balance sheet and restructuring portfolio.
Sneak Peek at Three Publishing Stocks
Among publishing stocks lined up to report on Oct 27, let’s take a sneak peek at three companies.
Meredith Corporation , one of the leading media and marketing companies with interests in publishing, broadcasting, integrated marketing and interactive media, is slated to report first-quarter fiscal 2017 results. Management had earlier projected first-quarter earnings per share in the range of 70–75 cents. The Zacks Consensus Estimate for the quarter currently stands at 72 cents.
Favorable advertising trends in the digital section and recent acquisitions continue to positively influence the company’s performance. Meredith is focused on bolstering advertising revenues, primarily in the digital space. Additionally, it is increasingly concentrating on brand licensing, marketing services and eCommerce. The company anticipates strong political advertising cycle as well as higher retransmission revenues and robust digital advertising revenue growth to drive its performance in fiscal 2017. However, with advancing technology, the print media is on a decline. Shift to online is likely to put enormous pressure on Meredith’s magazine portfolio. Though the company is expanding its digital presence, it will take time to complete the metamorphosis. (Read: Meredith to Report Q1 Earnings: What's in Store?)
MEREDITH CORP Price and EPS Surprise
MEREDITH CORP Price and EPS Surprise | MEREDITH CORP Quote
Meredith has a Zacks Rank #3 (Hold). However, our criteria of earnings beat has been let down by an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Another publishing stock, New Media Investment Group Inc. is scheduled to report third-quarter 2016 numbers tomorrow. The Zacks Consensus Estimate for the quarter currently stands at 17 cents. This publisher of locally-based print and online media in the U.S. has a favorable combination of a positive Earnings ESP of 35.29% and a Zacks Rank #3, which make us reasonably confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW MEDIA INV Price and EPS Surprise
NEW MEDIA INV Price and EPS Surprise | NEW MEDIA INV Quote
Diversified media conglomerate, Gannett Co., Inc. (GCI - Free Report) is also slated to report third-quarter 2016 results. The company is realigning its cost structure and streamlining its operations to increase efficiencies and safeguard its earnings and cash flows from dwindling print advertising revenues. Additionally, it is focused on improving its digital business and has undertaken strategic acquisitions. However, management had earlier stated that margins will remain under pressure in the third quarter due to investments made. Moreover, we observed that the company’s top line has fallen short of the Zacks Consensus Estimate in the last five quarters. Further, the company anticipates headwinds in the form of unfavorable foreign currency translations.
GANNETT CO INC Price and EPS Surprise
GANNETT CO INC Price and EPS Surprise | GANNETT CO INC Quote
Gannett carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter stands at 17 cents. In the previous quarter, the company reported in-line earnings. (Read: Gannett Q3 Earnings: What's in Store for the Stock?)
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>