Tribune Publishing Company's (NASDAQ:TPCO) Shift From Loss To Profit

We feel now is a pretty good time to analyse Tribune Publishing Company's (NASDAQ:TPCO) business as it appears the company may be on the cusp of a considerable accomplishment. Tribune Publishing Company, together with subsidiaries, publishes newspapers worldwide. The US$418m market-cap company posted a loss in its most recent financial year of US$27.3m and a latest trailing-twelve-month loss of US$72.3m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Tribune Publishing's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Tribune Publishing

Tribune Publishing is bordering on breakeven, according to some American Media analysts. They expect the company to post a final loss in 2020, before turning a profit of US$33m in 2021. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 160% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Tribune Publishing's upcoming projects, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.04% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Tribune Publishing, so if you are interested in understanding the company at a deeper level, take a look at Tribune Publishing's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Valuation: What is Tribune Publishing worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Tribune Publishing is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tribune Publishing’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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