Gannett's Return on Invested Capital Insights

According to data from Benzinga Pro, during Q1, Gannett's GCI reported sales totaled $748.08 million. Despite a 86.35% increase in earnings, the company posted a loss of $3.10 million. Gannett collected $826.54 million in revenue during Q4, but reported earnings showed a $22.72 million loss.

Why Is ROIC Significant?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Gannett posted an ROIC of 0.43%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Gannett posted an ROIC of 0.43%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Gannett, the positive return on invested capital ratio of 0.43% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

Gannett reported Q1 earnings per share at $0.03/share, which beat analyst predictions of $-0.07/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.