By David B. Wilkerson, MarketWatch
Last Update: 4:57 PM ET Oct 2, 2006
CHICAGO (MarketWatch) -- Newspaper stocks closed lower Monday following a downbeat note from Deutsche Bank Securities.
The firm's Paul Ginocchio said he has lowered his earnings expectations for the group in the fourth quarter of this year, as well as 2007. He blamed weakening sales trends for classified real estate and help wanted ads in the third quarter.
Help-wanted had been a very strong category for many newspaper publishers until early this year, while real estate was still robust for a number of papers as recently as the second quarter. Ginocchio says an expected drop in existing home sales will push real estate ad revenues down by a mid-single-digit percentage from the third quarter of 2005.
The analyst now maintains his fourth-quarter earnings estimate for Tribune Co. (TRB), at 56 cents a share, but has decreased his 2007 forecast to $1.99 from $2.01.
Tuesday, October 03, 2006
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