Tom Reese/Paul Rubillo, Dividend.com
Gannett Co. (GCI) just announced that full-year sales would fall about 8 percent, which is largely in line with analyst expectations.
The company is expecting revenue of $6.8 billion, down from $7.4 billion last year, but basically in-line with Wall Street consensus for sales of $6.86 billion. Management sees a tough first quarter for 2009, compared with the year-ago quarter, before the recession began to take a toll on the advertising market.
The Bottom Line
We have avoided shares of GCI since our early June coverage began, when shares were trading at $27.75. The company is currently sporting an in-all-likelihood unsustainable 18.26% dividend yield, based on last night’s closing stock price of $8.76. We do not see a catalyst that will quickly turn momentum around, so we would avoid the shares here.
Gannett (GCI) is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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