NEW YORK (AP) -- Gannett Co., the largest U.S. newspaper publisher, topped expectations for its second-quarter earnings Wednesday as it reversed a loss from a year ago, even though advertising revenue continues to dive. Its shares jumped 19 percent in premarket trading.
The McLean, Virginia-based company, which publishes USA Today and other daily newspapers, reported a profit of $70.5 million, or 30 cents per share. That compares with a loss of $2.29 billion, or $10.03 per share, a year ago, when the company took a hefty write-down on its declining market value.
Excluding special items, Gannett posted adjusted earnings of 46 cents per share, exceeding the average analyst forecast of 36 cents per share, according to Thomson Reuters.
Revenue in the latest quarter fell 18 percent to $1.41 billion, below analysts' projection for sales of $1.46 billion.
Ad revenue in Gannett's publishing division, which includes more than 80 U.S. daily newspapers, dropped 32 percent. That was slightly better than in the first quarter, when the unit posted a 34 percent decline.
Gannett's stock shot up 67 cents, or 19 percent, to $4.16 ahead of regular trading. The shares remain near the low end of their 52-week range of $1.85 to $21.68.
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