(AP) Newspaper publisher McClatchy Co. said Tuesday it expects third-quarter earnings to come in at the low end of guidance due to slow retail and automotive advertising revenue.
The company said advertising revenue has slowed compared with earlier expectations, resulting in a 1.7% increase in total revenue for the month. McClatchy, whose 12 dailies include the Minneapolis Star Tribune and Sacramento Bee, now expects to hit the low end of its prior guidance for third-quarter operating earnings of 82 cents to 84 cents per share, compared with 83 cents a year ago.
Analysts surveyed by Thomson Financial currently expect earnings per share of 84 cents. The company is slated to report earnings on Oct. 20.
“While our online advertising continues its rapid growth, and real estate and employment continue to be strong both online and in print, retail and automotive advertising are slower than expected,” said Gary Pruitt, McClatchy chairman and chief executive. “As a result, advertising has been growing slower this quarter than the mid single-digit range we had expected.”
For the year to date, ad revenue has grown 3.3% and total revenue is up 2.4% from the comparable period a year ago.
McClatchy shares rose 56 cents to $65.01 in morning trading on the New York Stock Exchange.