USA TODAY Co Q3 revenue falls 7.4%, misses estimates
Overview
US media and digital marketing firm's Q3 revenue fell 7.4% yr/yr, missing analyst expectations
Company posted positive adjusted net income
USA TODAY launched $100 mln annualized cost reduction program and plans opportunistic share repurchases
Outlook
Company expects full-year 2026 total revenues to decline mid-single digits on a same store basis
Total digital revenues expected to comprise over 50% of total revenues during 2027
Net income attributable to USA TODAY Co. expected to grow versus prior year; sequential improvement seen in Q4 2026
Result Drivers
SEARCH CHANGES AND INFLATION - Co said Q3 results were affected by changes in consumer search behavior and inflationary pressures
DIGITAL REVENUE GROWTH - Co reported growth in direct-sold digital advertising, digital-only subscriptions, and digital other revenue categories, which it said are central to its strategy
AUDIENCE STABILIZATION - Co said audience trends showed signs of stabilization and engagement strengthened across its platforms
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $519.24 mln | $528.33 mln (5 Analysts) |
Q3 Adjusted Net Income | $1.37 mln | ||
Q3 Net Loss | $4.61 mln | ||
Q3 Adjusted EBITDA | $36.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer publishing peer group is "buy"
Wall Street's median 12-month price target for USA TODAY Co Inc is $10.00, about 64.7% above its November 4 closing price of $6.07
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 31 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)