Gannett Co. Inc., Lee Enterprises Inc., The McClatchy Company and The New York Times Company highlighted in Zacks Industry

Gannett Co. Inc., Lee Enterprises Inc., The McClatchy Company and The New York
             Times Company highlighted in Zacks Industry Outlook

PR Newswire

CHICAGO, Jan. 16, 2013

CHICAGO, Jan. 16, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Machinery, including Gannett Co. Inc. (GCI), Lee Enterprises Inc.,
(LEE), The McClatchy Company (MNI) and The New York Times Company (NYT)


Industry: Publishing



Despite the tough times faced by the publishing industry, there are a number
of defensive names in the group that can hold their ground. Companies are
radically changing their business models to get in line with industry trends.

Gannett Co. Inc. (GCI) is diversifying its business by adding new revenue
streams to make it less susceptible to economic uncertainties. The company is
also streamlining its cost structure, strengthening its balance sheet and
rebalancing its portfolio. Gannett remains well positioned to harness the
opportunities of rapidly changing business model that includes digitalization
in order to keep itself on the growth path. The company recently provided
update of its growth initiatives and stated that its long-term objective is to
attain annual revenue growth of 2% to 4%.

The company posted better-than-expected third-quarter 2012 results. The
quarterly earnings of 56 cents a share beat the Zacks Consensus Estimate by a
couple of cents, and rose 27.3% from last year's 44 cents. Gannett's total
revenue climbed 3.4% year over year to $1,309.3 million during the quarter,
and came ahead of the Zacks Consensus Estimate of $1,293 million.

Gannett currently holds Zacks Rank #3 that translates into short-term Hold
rating. Other stocks in the publishing sector that look promising are Lee
Enterprises Inc. (LEE), which holds a Zacks Rank #1 (Strong Buy) and The
McClatchy Company (MNI), which holds a Zacks Rank #2 (Buy).


The newspaper industry continues its struggle with plummeting advertising
revenue amid the economic headwinds. Although murmurs about advertisers
returning to the market are gaining ground as the economy recovers, the
positive effects are yet to be realized.

The current economic upheaval is taking a toll on publishing companies, andThe
New York Times Company (NYT) is no exception. Total advertising revenue slid
8.9% to $182.6 million in the third-quarter of 2012, reflecting declines of 4%
in July and 11% in both August and September. Print advertising declined 10.9%
during the quarter.

Both national and retail advertising dipped 9.5% during the quarter. Total
classified advertising dropped 7.9%. The company's high dependence on
advertising revenue, a derivative of the health of the economy, remains a
potential threat. However, the company is repositioning itself for improvement
in print and digital media through a new subscription based model. The New
York Times Company currently holds Zacks Rank #3 (Hold).

Let's Conclude

The newspaper companies are transforming their business models to better
position themselves in a multi-platform media universe. Although the U.S.
economy is witnessing a sluggish improvement in the advertising environment,
we believe 2013 will not likely mark the resurrection of the publishing

With a strategic and steady newspaper budget, we could see fewer layoffs,
increased focus on web and local content, improved subscription and
concentration on profitable circulation.

Zacks Industry Rank

The Zacks Industry Rank, which derives its predictive power from the
time-tested Zacks Rank, helps us identify the industries that are expected
outperform others. The top 1/3rd of the Zacks Industry Rank qualify as
industries with 'Good' prospects, the bottom 1/3rd have 'Bad' prospects, and
middle 1/3rd as 'Neutral.' Most of the constituent 'industries' in the
business services sector fall in the top 1/3rd of the list.

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