Better Guidance from Gannett (GCI) Gives Boost To Newspaper Stocks (NYT, JRN, LEE)

A number of beaten-down newspaper stocks are seeing interest today on better-than-expected guidance from Gannett Co (NYSE: GCI). Those stocks include The New York Times Company (NYSE: NYT) +10%, Journal Communications Inc. (NYSE: JRN) +10%, McClatchy Company (NYSE: MNI) +12% and Lee Enterprises Inc. (NYSE: LEE) +30%. Gannett is 15% higher.

This morning, Gannett said it sees Q3 EPS of between $0.39 and $0.42, which compares favorably to the consensus of $0.28. Gannett noted, "Although overall advertising revenue comparisons remain difficult, our third quarter year-over-year publishing comparisons improved again versus first and second quarter comparisons."

In addition the company said, "Our continued efforts to achieve efficiencies and further consolidations company-wide along with significantly lower newsprint expense resulted in another substantial decline in our operating expenses. As a result, we continue to generate substantial operating cash flow which enabled us to lower debt by about $195 million in the quarter."

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