By: Jennifer Saba While Wachovia Equity Research is more upbeat about
July advertising revenue, Goldman Sachs is much more pessimistic. In a note to investors released today, lead analyst Peter Appert sees "no encouraging signs in July newspaper ad revenue."
For the companies in Goldman's coverage universe, July ad revenue sank 7.3%. While it's a slight improvement over June's decrease of 7.9%, comparisons in July should have been much easier.
"The continue deterioration in classified trends is particularly troubling, with July classified revenues off 12.5%, led by an estimated 26% drop in the real estate category," Appert wrote.
Analysts anticipate that August isn't looking much better.
Tribune and McClatchy posted the weakest results in July, down 10.3% and 9.4% respectively.
"Nothing in these results to alter our long-held view that investors should remain underweight the sector," Appert wrote.
Goldman isn't cutting estimates yet, waiting instead to see how August shapes up.
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