Benchmark Revises Earnings Estimates on Gannett

Benchmark revised its earnings estimates on Gannett GCI. In a research report published today, Benchmark stressed weak newspaper advertising as the reason for its decision. In the report, Benchmark states, "We are revising our FY11 estimates in view of the continued weakness in newspaper advertising. Total revenue is now forecast to decline by 3.5% y/y to $5.25 billion, down from $5.28 billion, including a 7% y/y decline in newspaper advertising. Our adjusted EBITDA estimate is $1.18 billion, down 9% y/y. We trim our EPS estimate to $2.17 from $2.22 as savings from the staff reduction is expected to bolster 2H11 EPS. Free cash flow may be $618 million." At the moment, Benchmark has a Buy rating and a price target of $18 placed on the company's stock. On Wednesday, Gannett lost 3.88% of its value to end the day at $13.61.