Tribune Publishing falls 17% on lower revenue, earnings guidance

September 24 00:07 2015

Shares of Tribune Publishing fell 17% after the owner of the Los Angeles Times, Chicago Trbune and nine other dailies lowered its estimates for revenue and earnings for the year, blaming its newspapers in Southern California for the downturn.

In a press release issued late afternoon on Friday, Tribune Publishing said its total revenue for the year will be between $1.645 billion to $1.675 billion. In its previous estimate guidance, it had forecast a range of $1.67 billion to $1.70 billion. Earnings before interest, taxes and other items will be between $145 million to $160 million. That is also lower than the range of $165 million to $175 million it estimated earlier in the year.

Shares ended down $1.84 to $8.75. “Revised guidance reflects lower forecasted revenue estimates for the year, concentrated in Southern California,” Tribune Publishing’s CFO Sandra Martin said in a statement. “Expense mitigation efforts” helped in slowing down the decline, she said.

A year ago, Tribune Publishing was spun off by its former parent, which is now called Tribune Media and focuses on broadcasting. Earlier this month, Tribune Publishing CEO Jack Griffin abruptly fired LA Times publisher Austin Beutner. Several of Beutner’s key hires soon left.