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NEW YORK (AFX) - Shares of The Washington Post Co. continued to decline Monday after posting nearly flat second-quarter earnings.
The publisher of The Washington Post, Newsweek magazine and owner of educational services provider Kaplan Inc. fell $24.38, or 3.2 percent, to $730.03 in midday trading on the New York Stock Exchange. The stock has traded in a 52-week range between $716 and $880.
The company reported Friday that it earned $78.5 million, or $8.17 per share, after preferred stock dividends for the three months ended July 2. While revenue climbed to $969 million, early retirement buyouts at the Post weighed on results.
Prudential Equity Group analyst Steven N. Barlow lowered his third-quarter estimate to $8.54 per share from $9.10 per share and full-year estimate to $37.27 from $38.60 mostly on divisional margin reductions. He also dropped his price target to $874 from $939 on 2007 valuation.
"Overall, we think the quarter's results were on target but not table pounding," Barlow said in an Aug. 4 client note.
Analyst Lauren Rich Fine of Merrill Lynch reiterated a "Neutral" rating on the company in a client note Monday.
"Uncertainty regarding the near-term growth rates within the post-secondary education sector is likely to cap share price performance, despite Kaplan's apparent outperformance, as well as continued negative sentiment towards traditional media companies," she said.
Rich Fine boosted her full-year earnings forecast by 1.4 percent to $38.14 per share "as the small second-quarter positive surprise and a stronger outlook for cable are partly offset by a dimmer outlook for magazine and education." She raised her full-year 2007 earnings estimate 1.5 percent to $40.15 per share on buyout savings. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
