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Gannett's (GCI) Q4 Earnings in Focus: What's in the Cards?

Gannett Co., Inc.GCI , a diversified publishing conglomerate, is expected to report fourth-quarter 2015 results on Feb 17. Gannett, which retained the name of its parent company, was formed after the Broadcasting and Digital units were spun off to form a separate entity known as TEGNA.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Gannett is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Gannett has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 55 cents. The company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors Influencing this Quarter

A significant presence in digital and print publications, together with the flagship brand, USA TODAY, and Newsquest, the U.K. publishing unit, position Gannett well to undertake considerable efforts toward establishing itself as the next-generation media mogul. However, focus in the quarter to be reported will be on advertising as well as circulation revenues that declined 13.1% and 3.4%, respectively, in the third quarter, in turn denting the top line.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Foot Locker, Inc. FL has an Earnings ESP of +1.79% and a Zacks Rank #2 (Buy).

Discovery Communications, Inc. DISCA has an Earnings ESP of +8.70% and a Zacks Rank #3 (Hold).

Lowe's Companies, Inc. LOW has an Earnings ESP of +1.70% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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