Goldman Sachs Cuts Dow Jones EPS Estimate

By: E&P Staff Goldman Sachs trimmed its earnings per share estimate on Dow Jones & Co. after the company reported weak May advertising results on Monday. The research firm lowered its Q2 EPS forecast from 47 cents to 45 cents.

In May, the company said advertising revenue at its flagship The Wall Street Journal fell 3.4%.

So far in the quarter, ad revenue is down 7.8% at the Journal with all major categories experiencing declines. The local media group deteriorated more with advertising revenue down 8.1%.

Though May results were soft, the company?s performance was better than in April.

?It should be noted that the company has not changed its full-year 2007 WSJ guidance calling for mid-single-digit ad revenue growth,? according to a note released from Goldman this morning. ?We now expect the growth to be even more loaded to the second half of the year than we had previously modeled.?

For the year, the research firm cut its EPS estimate from $1.53 to $1.49.

Goldman Sachs is not rated on Dow Jones because the company's investment firm division is acting as an advisor.


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