Gannett (GCI, Financial) has entered into a strategic partnership with XPR Media to enhance the distribution of press releases via the USA TODAY Network, which includes over 200 publications across the nation. This collaboration aims to utilize Gannett's expansive media reach alongside XPR Media's advanced content delivery systems to provide greater visibility for press releases to news agencies. Starting immediately, content disseminated through this agreement will be prominently displayed on USA TODAY's website and across all associated publications within the network.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Gannett Co Inc (GCI, Financial) is $5.52 with a high estimate of $8.00 and a low estimate of $3.00. The average target implies an upside of 58.17% from the current price of $3.49. More detailed estimate data can be found on the Gannett Co Inc (GCI) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Gannett Co Inc's (GCI, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gannett Co Inc (GCI, Financial) in one year is $2.14, suggesting a downside of 38.68% from the current price of $3.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gannett Co Inc (GCI) Summary page.
GCI Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gannett Co Inc (GCI, Financial) reported significant bottom line improvement despite certain one-time items.
- The company generated solid free cash flow and aggressively reduced debt by approximately $75 million.
- Gannett Co Inc (GCI) reaffirmed its full-year 2025 business outlook, indicating confidence in achieving financial objectives.
- The company has the largest digital media audience among content creators, with 195 million average monthly unique visitors.
- Gannett Co Inc (GCI) is well-positioned to benefit from structural changes in the digital advertising ecosystem, particularly following the DOJ's ruling against Google.
Negative Points
- Total operating revenues decreased by 10.1% year-over-year, with a 7.7% decline on a same-store basis.
- Digital revenues were down 6.4%, or 3.8% on a same-store basis, due to softer trends and increased revenue reversals.
- The company faced challenges from Google's manual actions, which delayed the pace of growth in affiliate revenue.
- Gannett Co Inc (GCI) reported a net loss of $7 million in the first quarter, despite improvements from the previous year.
- The digital subscription business experienced higher than normal revenue reversals, impacting growth.
