Gannett Co., Inc. (GCI), a diversified media conglomerate, is slated to report third-quarter 2014 results on Oct 20. In the last quarter, it posted a positive earnings surprise of 6.4%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Publishing advertising revenues, similar to the previous quarter, may also remain under pressure this quarter. However, political advertising demand may provide some 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 55 cents.
Zacks Rank: Gannett has a Zacks Rank #4 (Sell). 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 instead, as our model shows that these have the right combination of elements:
Abercrombie & Fitch Co. (ANF) has an Earnings ESP of +5.63% and a Zacks Rank #2 (Buy).
The Home Depot, Inc. (HD) has an Earnings ESP of +0.89% and a Zacks Rank #2.
The New York Times Company (NYT) has an Earnings ESP of +100.00% and a Zacks Rank #2.
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