McClatchy Co. (NYSE:MNI), the nation’s third-largest newspaper company, was down more than 3% Thursday after reporting earlier in the day weaker-than expected second quarter earnings, despite gradual improvements in advertising revenue.
The Sacramento, Calif.-based company posted net income of $7.3 million, or 9 cents a share, compared with $42 million, or 50 cents a share, in the same quarter last year, and falling narrowly behind average analyst estimates of 10 cents, according to a Thomson Reuters poll.
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The company posted revenues of $342 million, down 6.4% from $365 million a year ago, and falling short of the Street’s view of $342.4 million.
Advertising sales were down 8.2% from the earlier-year period, but advertising trends continue to improve, as compared with an 11.2% decline in the year’s first quarter and 20.5% decline in the fourth quarter of 2009.
McClatchy CEO Gary Pruitt said the company has continued to see signs of recovery, pointing specifically to increases in advertising revenue across all its segments.
“While the economic recovery hasn't been robust or smooth, we believe it is beginning to spread across the markets we serve,” Pruitt said.