Zacks Investment Research downgraded shares of The Washington Post Company (WPO) from OUTPERFORM to NEUTRAL on May 10, 2012, with a target price of $356.00.
We recently downgraded our recommendation on The Washington Post Company to Neutral following its dismal first-quarter 2012 results. The quarterly earnings of $0.83 per share fell substantially from $4.33 in the prior-year quarter. On the other hand, revenue for the quarter also dipped 7%. The decline reflected soft advertising demand at the Newspaper Publishing division and slump in student enrollment. Print advertising fell 17%, whereas total student enrollment dropped 18% during the quarter. To counter the sluggishness in student enrollment, Kaplan Education division has undertaken a restructuring plan to lower its costs structure in the near future. Further, Kaplan International remains promising, registering a growth of 16%. Cable division is also performing well, reflecting sustained improvement in Internet and telephone service revenues. Moreover, the company also witnessed strength across Television Broadcasting with revenue climbing 13% during the quarter.
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