New web deal looks promising

Article Excerpt

GANNETT CO. INC. $14 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 238.2 million; Market cap: $3.3 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.1%; WSSF Rating: Average) has signed a deal with Internet-search provider Yahoo Inc. (Nasdaq symbol YHOO) that should let it sell more ads on the web sites of its newspapers and TV stations. That should help Gannett offset declining print advertising. Meanwhile, Gannett’s earnings per share rose 32.6% in the three months ended June 27, 2010, to $0.61 from $0.46 a year earlier. Savings from job cuts were the main reason for the higher earnings. Revenue fell 1.6%, to $1.37 billion from $1.39 billion. Gannett is a buy. buy…