USA Today (NYSE:TDAY) Issues Quarterly Earnings Results

USA Today (NYSE:TDAY) posted its quarterly earnings results on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $519.24 million during the quarter. USA Today had a negative net margin of 1.81% and a negative return on equity of 21.13%.

Here are the key takeaways from USA Today’s conference call:

• Third-quarter revenue fell 7.4% to $519.2 million and adjusted EBITDA declined 36% to $36.6 million. The company cut its full-year outlook, now expecting a mid-single-digit same-store revenue decline and lower full-year adjusted EBITDA and free cash flow.
• Management said audience levels stabilized sequentially in Q3, while premium direct-sold digital advertising returned to year-over-year growth; it expects that growth to accelerate in Q4. Search-related pressure is concentrated in indirect advertising, an annualized revenue stream of about $100 million that fell 32% year over year.
• Digital-only subscription revenue rose 5.3% for a third consecutive quarter of growth, and ARPU reached a record $10.82, up 23%. Digital-other revenue increased 24.8% to $21.3 million, with management expecting further sequential growth in Q4.
• A $100 million annualized cost-reduction program was fully implemented by early October, and management expects significant sequential improvement in Q4 adjusted EBITDA and free cash flow. Executives forecast growth in both measures in 2027, while noting that additional cost-saving opportunities remain.

USA Today Stock Up 6.7%

Shares of NYSE TDAY traded up $0.41 on Friday, hitting $6.53. The company had a trading volume of 3,884,622 shares, compared to its average volume of 2,563,410. The business has a 50 day moving average of $6.59 and a two-hundred day moving average of $7.06. The firm has a market capitalization of $958.73 million, a P/E ratio of -108.82 and a beta of 1.52. The company has a quick ratio of 0.78, a current ratio of 0.81 and a debt-to-equity ratio of 5.74. USA Today has a 12-month low of $4.33 and a 12-month high of $9.21.

Hedge Funds Weigh In On USA Today

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its stake in shares of USA Today by 71.2% during the 3rd quarter. Allworth Financial LP now owns 3,930 shares of the company’s stock valued at $25,000 after buying an additional 1,635 shares during the last quarter. KBC Group NV acquired a new position in USA Today in the first quarter valued at approximately $31,000. Sterling Capital Management LLC grew its stake in USA Today by 842.3% during the 3rd quarter. Sterling Capital Management LLC now owns 4,542 shares of the company’s stock worth $29,000 after buying an additional 4,060 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in USA Today during the 2nd quarter worth $48,000. Finally, State of Alaska Department of Revenue increased its position in USA Today by 32.9% in the third quarter. State of Alaska Department of Revenue now owns 5,979 shares of the company’s stock worth $37,000 after buying an additional 1,481 shares during the period. 76.71% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on TDAY shares. Weiss Ratings downgraded USA Today from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday, September 9th. Citizens Jmp boosted their price target on USA Today from $8.00 to $10.00 and gave the stock a “market outperform” rating in a research note on Tuesday, July 14th. Wall Street Zen cut shares of USA Today from a “buy” rating to a “hold” rating in a research note on Monday, July 20th. Rosenblatt Securities increased their target price on USA Today from $10.00 to $11.00 and gave the company a “buy” rating in a report on Friday. Finally, Citigroup upgraded shares of USA Today from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $7.20 to $8.95 in a report on Friday. Three research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $9.50.

USA Today Company Profile

USA TODAY is a national news and media brand owned by Gannett Co, Inc It publishes news and analysis through its website, mobile applications and print newspaper, covering national and international events as well as politics, sports, business, entertainment, lifestyle and consumer topics.

Founded in 1982, USA TODAY was developed as a broadly accessible national newspaper and has expanded into a digital-first media operation. Its content is distributed through online articles, video, podcasts, newsletters and other digital formats, in addition to its print edition.

USA TODAY also operates within Gannett’s broader network of local newspapers and digital publications, serving readers across the United States.