USA Today (NYSE:TDAY) Releases Earnings Results

USA Today (NYSE:TDAY) released its earnings results on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $519.24 million during the quarter. USA Today had a negative return on equity of 21.13% and a negative net margin of 1.81%.

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 Stock Performance

Shares of NYSE TDAY traded up $0.03 during trading on Thursday, reaching $6.10. 4,667,427 shares of the stock traded hands, compared to its average volume of 2,715,798. USA Today has a 52-week low of $4.33 and a 52-week high of $9.21. The company has a debt-to-equity ratio of 5.74, a current ratio of 0.81 and a quick ratio of 0.78. The company has a 50-day moving average of $6.58 and a 200-day moving average of $7.06. The stock has a market capitalization of $895.60 million, a P/E ratio of -20.33 and a beta of 1.52.

Institutional Investors Weigh In On USA Today

Several large investors have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue lifted its holdings in shares of USA Today by 32.9% in the third quarter. State of Alaska Department of Revenue now owns 5,979 shares of the company’s stock worth $37,000 after buying an additional 1,481 shares in the last quarter. Abel Hall LLC boosted its position in shares of USA Today by 12.9% in the first quarter. Abel Hall LLC now owns 14,516 shares of the company’s stock valued at $102,000 after acquiring an additional 1,660 shares during the period. PFG Investments LLC boosted its position in shares of USA Today by 3.2% in the first quarter. PFG Investments LLC now owns 54,243 shares of the company’s stock valued at $382,000 after acquiring an additional 1,700 shares during the period. First Trust Advisors LP boosted its position in shares of USA Today by 0.6% in the first quarter. First Trust Advisors LP now owns 396,086 shares of the company’s stock valued at $2,792,000 after acquiring an additional 2,287 shares during the period. Finally, Corient Private Wealth LP grew its stake in USA Today by 23.3% during the second quarter. Corient Private Wealth LP now owns 14,798 shares of the company’s stock valued at $127,000 after acquiring an additional 2,793 shares in the last quarter. Hedge funds and other institutional investors own 76.71% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Rosenblatt Securities reissued a “buy” rating and issued a $10.00 price target on shares of USA Today in a report on Friday, August 7th. Wall Street Zen downgraded shares of USA Today from a “buy” rating to a “hold” rating in a report on Monday, July 20th. Citizens Jmp raised their price objective on shares of USA Today from $8.00 to $10.00 and gave the stock a “market outperform” rating in a report on Tuesday, July 14th. Weiss Ratings lowered shares of USA Today from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, September 9th. Finally, Citigroup reiterated a “neutral” rating on shares of USA Today in a research note on Monday, August 24th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $9.03.

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.