Gannett Co., Inc. (NYSE:GCI) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

The investors in Gannett Co., Inc.'s (NYSE:GCI) will be rubbing their hands together with glee today, after the share price leapt 41% to US$5.30 in the week following its third-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$561m, statutory losses exploded to US$0.27 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the five analysts covering Gannett provided consensus estimates of US$2.28b revenue in 2026, which would reflect a discernible 2.5% decline over the past 12 months. Statutory earnings per share are forecast to nosedive 81% to US$0.13 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.29b and earnings per share (EPS) of US$0.16 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

View our latest analysis for Gannett

It might be a surprise to learn that the consensus price target was broadly unchanged at US$5.86, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Gannett, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$4.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 7.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.9% per year. So while a broad number of companies are forecast to grow, unfortunately Gannett is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gannett. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Gannett's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$5.86, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Gannett. Long-term earnings power is much more important than next year's profits. We have forecasts for Gannett going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Gannett (2 shouldn't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.