USA Today (NYSE:TDAY – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, FiscalAI reports. USA Today had a negative return on equity of 21.13% and a negative net margin of 1.81%. The business had revenue of $519.24 million during the quarter.
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 Price Performance
USA Today stock traded up $0.49 during trading hours on Friday, reaching $6.61. 1,647,901 shares of the stock were exchanged, compared to its average volume of 2,006,439. The company has a market cap of $970.47 million, a P/E ratio of -22.03 and a beta of 1.52. The company has a current ratio of 0.81, a quick ratio of 0.78 and a debt-to-equity ratio of 5.74. USA Today has a twelve month low of $4.33 and a twelve month high of $9.21. The stock has a 50 day moving average of $6.58 and a two-hundred day moving average of $7.06.
Institutional Trading of USA Today
Institutional investors and hedge funds have recently made changes to their positions in the company. Two Seas Capital LP lifted its stake in USA Today by 3.1% in the 3rd quarter. Two Seas Capital LP now owns 14,504,707 shares of the company’s stock valued at $91,235,000 after purchasing an additional 434,396 shares during the last quarter. Whitefort Capital Management LP acquired a new stake in USA Today in the second quarter valued at approximately $17,141,322. Bank of America Corp DE bought a new stake in shares of USA Today during the second quarter worth $29,881,000. Miller Value Partners LLC bought a new stake in shares of USA Today during the second quarter worth $11,979,000. Finally, Round Rock Advisors LLC bought a new stake in shares of USA Today during the second quarter worth $2,131,000. Institutional investors own 76.71% of the company’s stock.
Analyst Ratings Changes
A number of analysts have issued reports on TDAY shares. Citizens Jmp boosted their price objective on shares of USA Today from $8.00 to $10.00 and gave the company a “market outperform” rating in a report on Tuesday, July 14th. Rosenblatt Securities raised their target price on shares of USA Today from $10.00 to $11.00 and gave the stock a “buy” rating in a report on Friday. Citigroup reiterated a “neutral” rating on shares of USA Today in a research report on Monday, August 24th. Wall Street Zen downgraded shares of USA Today from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Weiss Ratings cut USA Today from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday, September 9th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $9.28.
Get Our Latest Research Report on USA Today
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.
Read More
- Five stocks we like better than USA Today
- CVS Raised Its Outlook and Announced a Breakup—So Why Did the Stock Drop?
- Array and Shoals Are Merging: Who Really Wins the All-Stock Solar Deal?
- Duolingo’s User Growth Is Outpacing Bookings, But Is Its Strategy Paying Off?
- Block by Block: Cash App Builds a Stronger Foundation
Receive News & Ratings for USA Today Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for USA Today and related companies with MarketBeat.com's FREE daily email newsletter.
