Shares of Gannett (GCI), the largest U.S. local news publisher and owner of USA TODAY, are soaring 5.12% in Friday's intraday trading session. The surge comes on the heels of the company's impressive second-quarter earnings report and a reiterated Buy rating from a JMP analyst.
Gannett's Q2 2025 results, released on July 31, showcased a remarkable turnaround in profitability. The company reported earnings per share of $0.42, dramatically beating the consensus estimate of a $0.06 loss. This represents a staggering 367% year-over-year increase in EPS. Despite a revenue decline of 8.6% to $584.9 million, Gannett's bottom-line performance has impressed investors, driving the stock's upward movement.
Adding to the positive sentiment, JMP analyst Matthew Condon reiterated a Buy rating on Gannett with a price target of $6.00. This vote of confidence from Wall Street, coupled with the company's strong earnings beat, has fueled investor optimism. Furthermore, Gannett's progress in debt reduction, with $100 million repaid in the first half of 2025, and its improved profitability metrics have contributed to the stock's attractiveness. The company's outlook for the second half of 2025, projecting same-store digital revenue growth of 3% to 5% and over 100% increase in free cash flow, suggests a positive trajectory that investors are eager to capitalize on.
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