Gannett Co. (GCI) shares are soaring 5.62% in pre-market trading on Thursday following the release of its second-quarter earnings report and the announcement of a significant cost reduction program. The U.S. newspaper chain has surpassed analysts' expectations, demonstrating resilience in a challenging media landscape.
The company reported a quarterly earnings per share (EPS) of $0.45, significantly beating the analyst consensus estimate of $(0.06). This represents a remarkable 875.86% surprise and a 136.84% increase from the same period last year. While Gannett's quarterly revenue of $584.861 million slightly missed estimates, the company's bottom line performance has impressed investors.
Adding to the positive sentiment, Gannett announced the implementation of a targeted $100 million annualized expense reduction program. CEO Michael Reed stated, "We are implementing targeted annualized expense reductions of approximately $100 million that we anticipate will create a lower and more variable cost structure." This strategic move aims to streamline operations and improve profitability, despite the company's updated outlook projecting a low-to-mid single-digit decline in full-year revenues on a same-store basis.
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