Cars.com Drives Gannett Profit Above Expectations

Gannett Co. Inc. reported better-than-expected fourth-quarter earnings on Tuesday as digital revenues offset a decline in print publishing. The media company reported net income of $676 million, or $2.92 a share, compared with a year-earlier profit of $90.7 million, or 39 cents. Adjusted earnings per share were $1.02, topping analyst expectations by two pennies, according to FactSet data. Revenue for the three-month period climbed 24% to $1.7 billion, matching analyst expectations. Gannett, which operates CareerBuilder.com and Cars.com, said it achieved record digital segment revenue during the quarter, with sales growing 77% year-over-year. The company said newly-purchased Cars.com contributed significantly to the strong digital gains. Gannett took full ownership of Cars.com in a $1.8 billion deal inked in August. Broadcast revenues climbed 117% on higher political spending, partially offset by a 6.2% decrease in publishing revenues led by USA TODAY and Newsquest. Shares were unmoved in premarket trade.