By: Shares of newspaper publishers traded mostly lower Thursday as a Benchmark Co. analyst painted a gloomy picture for the sector's fourth-quarter and 2008 prospects.
Analysts have expressed concern for months over newspaper publishers' continued advertising revenue declines. The industry has struggled to keep pace with the consumer shift from print to online.
Analyst Edward Atorino said the sector seems to be off to a poor start in the fourth quarter, but in line with expectations. He anticipates lower earnings in the quarter, but said in a client note that expectations may be too low for companies including Gannett Co. and E.W. Scripps Co.
Many newspaper publishers will be presenting at the Annual Media Conference in New York next week, with Atorino anticipating companies will indicate the likelihood of ongoing revenue softness next year as they continue to make cost cuts and try to expand online revenue.
The analyst anticipates limited 2008 earnings forecasts but said he hopes "for some sign of expected stabilization or turnaround by the second half."
Shares of Gannett fell 26 cents to $36.61 in morning trading, while E.W. Scripps' stock shed 75 cents to $43.52.
Elsewhere in the sector, McClatchy Co. dropped 49 cents, or 3.5 percent, to $13.38. The stock hit a fresh 52-week low of $13.28 earlier in the session. It has traded between $13.45 and $43.70 over the past year.
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