LEE ENTERPRISES Reports Drop in Revenue for FY2022 Q4, Despite Modest Net Income Increase
December 26, 2022
Earnings report
Lee Enterprises ($NASDAQ:LEE) is a publicly traded media company that has been in business for more than a century. On December 9, 2022, Lee Enterprises reported earnings results for FY2022 Q4 as of September 30, 2022. For the fourth quarter, the company reported total revenue of USD -6.3 million, down 232.4% year over year. Despite this, the company reported net income of USD 193.6 million, up 0.1% year over year. The company attributed its net income increase to cost-cutting measures and efficiency initiatives which helped to offset the negative impact of its revenue decline. It also noted that it has taken steps to reduce debt, which should help strengthen its financial health in the future.
The company also announced plans to focus on digital initiatives, such as improving its digital presence and developing new products to better serve its customers. It also plans to invest in its content and expand its reach through strategic partnerships with other media companies. Lee Enterprises is currently facing a challenging operating environment, but it appears to be taking the necessary steps to adapt and remain successful in the future. This includes continuing to focus on cost cutting and efficiency initiatives, investing in digital initiatives, and diversifying its revenue streams.
Market Price
On Friday, Lee Enterprises reported a drop in revenue for the fourth quarter of its fiscal year 2022, despite a modest increase in net income. The company’s stock opened at $17.6 and closed at $17.9, up by 0.5% from its prior closing price of $17.8. Despite the decrease in revenue, Lee Enterprises was able to maintain a positive net income due to cost-cutting measures and the implementation of digital initiatives that resulted in increased digital subscribers and ad revenue. The company has also emphasized its commitment to providing local journalism to its readers and continues to invest in initiatives that promote its brand and reach new audiences. The company stated that it was well-positioned to continue to invest in growth opportunities while maintaining its commitment to delivering value to shareholders.
Overall, Lee Enterprises reported mixed results for its fourth quarter of fiscal year 2022. Despite a decrease in revenue, the company was able to improve its net income through cost-cutting measures and investments in digital initiatives. Going forward, the company plans to continue investing in initiatives that promote its brand and reach new audiences while maintaining its commitment to delivering value to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lee Enterprises. More…
| Total Revenues | Net Income | Net Margin |
| 780.97 | -1.22 | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lee Enterprises. More…
| Operations | Investing | Financing |
| 8.02 | -2.28 | -55.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lee Enterprises. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 794.84 | 740.22 | 8.77 |
Key Ratios Snapshot
Some of the financial key ratios for Lee Enterprises are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.3% | -14.2% | 5.5% |
| FCF Margin | ROE | ROA |
| 0.0% | 50.8% | 3.3% |
VI Analysis
Fundamentals are the key to assessing a company’s long-term potential. With VI app, analyzing fundamentals of LEE ENTERPRISES is made simple. According to the VI Star Chart, LEE ENTERPRISES is strong in liquidity, medium in profitability and weak in asset, dividend and growth. This classification of ‘rhino’ means that the company has achieved moderate revenue or earnings growth. Investors who are looking for stability and predictability may find this company an attractive option. Additionally, with an intermediate health score of 6/10 considering its cashflows and debt, LEE ENTERPRISES might be able to pay off debt and fund future operations. Thus, those seeking a safe investment option may find this company suitable. While the company’s fundamentals indicate its long-term potential, it is important to remember that there is no guarantee of success. Therefore, investors should always conduct their own research and make decisions based on their own risk tolerance levels. More…
VI Peers
Lee Enterprises Inc is an established leader in the media industry, competing against other companies such as AdTheorent Holding Co Inc, Propel Media Inc, and Meta Media Holdings Ltd. Despite the presence of these formidable rivals, Lee Enterprises Inc has been able to maintain its position as a major player in the market through strategic investments and operational excellence.
– AdTheorent Holding Co Inc ($NASDAQ:ADTH)
AdTheorent Holding Co Inc is a leading digital advertising company that specializes in providing innovative technology solutions and services to help brands create and deliver engaging and meaningful customer experiences. As of 2022, the company has a market capitalization of 134.7M and a Return on Equity of 18.12%. This indicates that the company is performing well and is able to generate an attractive return on its shareholders’ investments. AdTheorent Holding Co Inc’s strong financial performance and robust market cap are further testament to its position in the industry as a leader in the digital advertising space.
– Propel Media Inc ($OTCPK:PROM)
Propel Media Inc is a digital marketing company that specializes in performance-based advertising. The company has a market cap of 19.98M as of 2022, making it a relatively small company compared to its peers. Its Return on Equity (ROE) is -67.1%, indicating that the company has not been performing well financially. This could be due to poor management or a lack of investment in the company. In either case, Propel Media Inc needs to improve its performance if it wants to remain competitive in the industry.
– Meta Media Holdings Ltd ($SEHK:00072)
Meta Media Holdings Ltd is a leading provider of digital media solutions. The company specializes in the development of websites, mobile applications, and other digital media products for both enterprise and consumer markets. As of 2022, Meta Media Holdings Ltd has a market capitalization of 153.42M which indicates that the company is performing well in the market. Additionally, its Return on Equity (ROE) stands at 1.77%, indicating that the company’s investments are generating a good return on investment.
Summary
Investing in Lee Enterprises can be a risky endeavor given the company’s recent financial results. In the fourth quarter of FY2022, Lee Enterprises reported total revenue of -6.3 million, which was a decrease of 232.4% year over year. Net income also decreased by 0.1% to 193.6 million. These numbers indicate that Lee Enterprises may not be the most attractive investment option at the moment. It is important to note that the company is still in a precarious financial position and investors should proceed with caution when considering investing in Lee Enterprises. While the company’s revenue and income have decreased, there are still some positives to consider.
First, Lee Enterprises has a strong portfolio of investments and its core business is still strong. Second, the company has recently implemented cost-saving measures which may help to improve its financial performance in the future. Lastly, Lee Enterprises has strong relationships with its customers and suppliers, which could allow for more efficient operations and increased profits. Overall, investing in Lee Enterprises is a risky endeavor and investors should carefully consider all of the risks and rewards before making any investments. While the company may have had a difficult quarter, there are still some positives to consider. Investors should do their research and understand all of the risks before investing in Lee Enterprises.
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