By: Jennifer Saba Next week marks the beginning of Q2 results and it's expected to play out much like Q1 with feeble revenue growth, according to Goldman Sachs. The research firm released a note today anticipating what executives plan to announce. Based on the Mid-Year Media Review, Goldman expects "little if any surprises from newspaper publishers this quarter."
Q2 year-over-year ad revenue growth is estimated to increase 3 percent, roughly in line with Q1 results. However, the firm predicts a negative trend in Q2 circulation revenues, with a "troubling" 2 percent decline. All this will impact earnings, which are expected to slip in the low-single digit percentages in Q2.
Gannett, McClatchy, and E.W. Scripps should post above group average earnings per share gains while Dow Jones, Journal Communications, and The New York Times will likely announce earnings declines in the low-teens percentage range.
Also in the report, Goldman notes the recent circulation allegations surrounding McClatchy's Star Tribune in Minneapolis (four advertisers filed suit against the paper claiming circulation inflation). "Given the focus on circulation over the past 12 months by the newspaper companies, the Audit Bureau of Circulations, and Congress, we would be surprised to learn the allegations which surfaced a year after last year's circulation troubles were indeed true," the report said.
Comments
No comments on this item Please log in to comment by clicking here