NEW YORK (AP) -- Shares of newspaper publishers were mixed Tuesday after two of the largest chains in the country, Gannett Co. and McClatchy Co., said revenue dropped in April.
McClatchy said its revenue declined 5.5 percent compared with April 2006, with ad revenue falling 7.6 percent. Gannett, which publishes USA Today, said Monday its revenue shrank by 2 percent. Ad revenue fell 3.1 percent as more classified ads ran on the Internet, with fewer being printed.
McClatchy shares lost 39 cents to close at $28.49.
Gannett shares slid 81 cents to $58.50.
Goldman Sachs analyst Peter Appert cut his profit estimates for both companies for the rest of this year, and for 2008 and 2009. He said McAllen, Va.-based Gannett is well-run company, but it cannot overcome the problems of the newspaper business.
"We believe even the most diligent cost management efforts cannot fully offset the impact of the severe revenue pressures currently being seen in the newspaper industry," he said.
Here's how other newspaper stocks performed Tuesday:
New York Times Co. rose 43 cents to $25.03.
Belo Corp. rose 9 cents to $20.35.
Dow Jones & Co. rose 36 cents to $51.46.
EW Scripps Co. fell 30 cents to $45.06.
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