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Will Gannett (GCI) Let Down Investors This Earnings Season? - Analyst Blog

Gannett Co., Inc. (GCI), a diversified media conglomerate, is slated to report fourth-quarter 2014 results on Feb 3. In the last quarter, it had posted a positive earnings surprise of 7.3%. Let’s see how things are shaping up for this announcement.

Factors Affecting This Quarter

Publishing advertising revenue, similar to the previous quarter, may also remain under pressure this quarter. However, Broadcasting segment on account of the enhanced portfolio of television stations and the Digital segment may provide cushion. Moreover, Gannett might discuss on its recent decision of splitting its business into two separate entities, one completely focusing on Broadcasting and Digital businesses, and the other concentrating on Publishing.

Earnings Whispers

Our proven model does not conclusively show that Gannett is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.

Zacks ESP: Gannett has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.01.

Zacks Rank: Gannett has a Zacks Rank #3 (Hold). Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements:

Thomson Reuters Corp. (TRI) has an Earnings ESP of +2.08% and a Zacks Rank #3.

O'Reilly Automotive Inc. (ORLY) has an Earnings ESP of +2.40% and a Zacks Rank #2 (Buy).

Chipotle Mexican Grill, Inc. (CMG) has an Earnings ESP of +3.18% and a Zacks Rank #2.


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GANNETT INC (GCI): Free Stock Analysis Report
 
CHIPOTLE MEXICN (CMG): Free Stock Analysis Report
 
O REILLY AUTO (ORLY): Free Stock Analysis Report
 
THOMSON REUTERS (TRI): Free Stock Analysis Report
 
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