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Zacks Industry Outlook Highlights: Gannett, Tribune and New York Times Co.



  Zacks Industry Outlook Highlights: Gannett, Tribune and New York Times Co.

PR Newswire

CHICAGO, May 9, 2013

CHICAGO, May 9, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses
the U.S. Publishing, including Gannett Co. Inc. (NYSE:GCI), Tribune Company
(OTC:TRBAA) and The New York Times Company (NYSE:NYT).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

A synopsis of today's Industry Outlook is presented below. The full article
can be read at  

Link: 
http://www.zacks.com/commentary/27191/publishing-industry-stock-update-may-2013

We believe the success of the pay model depends on the accessibility of new
articles across the web. Potential customers will be reluctant to shell out a
penny if content is available free elsewhere.

OPPORTUNITIES

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. (NYSE: 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 such as
digitalization in order to keep itself on the growth path.

Gannett posted stronger-than-anticipated first-quarter 2013 results,
benefiting largely from its all access content subscription model coupled with
sturdy performance of its Broadcasting and Digital segments. The adjusted
quarterly earnings came in at 37 cents a share that surpassed the Zacks
Consensus Estimate of 34 cents, and rose 8.8% year over year.

Gannett currently holds Zacks Rank #3 (Hold). Another stock in the publishing
sector that looks promising is Tribune Company (OTC: TRBAA), which holds a
Zacks Rank #1 (Strong Buy).

WEAKNESSES

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 have yet to be realized.

The current economic upheaval is taking a toll on publishing companies, andThe
New York Times Company (NYSE:NYT) is no exception. During first-quarter 2013,
total advertising revenue slid 11.2%, whereas print advertising fell 13.3%.
Total classified advertising dropped 10.9%.

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 carries a Zacks
Rank #4 (Sell).

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