By: Jennifer Saba Wells Fargo analysts John Janedis, Jaime Morris and Brendan Metrano have thrown cold water on a potential advertising recovery in Q3.
According to a note released on Gannett, the bellwether of newspapers, the team said ad revenue has stalled in August while September appears to be starting off weak.
Wells Fargo reduced its Q3 newspaper advertising revenue estimate for Gannett from a decline of 25.5% to a decline of 28.8%. Local is forecasted to fall 22.5%, national is anticipated to drop 21% and classified is estimated to decrease 40% (versus a previous -19%, -18%, and -37% respectively).
Overall advertising revenue is expected to fall 20.2% in Q4, revised down from a decline of 16.9%.
Wells Fargo maintains its "market perform" rating on Gannett (NYSE: GCI). As of late morning, shares of GCI were trading up 12 cents to $8.04.
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