Dow Jones' Profit Beats Consensus, Online Ads Grow 23%

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

Dow Jones Profit Surges on Increase In Ad Revenue

• Summary: Dow Jones' Q2 results: Revenue up 5.9% to $481.2 million, below consensus of $489.4. Net income of $28.8 million EPS of $0.34 versus consensus of $0.35. Note however that net income and EPS includes a $9.9 million pre-tax charge relating to the outsourcing of 250 full-time positions in technology, circulation and administrative support, partially offset by a $3.1 million gain on an asset sale. The new WSJ Weekend Edition added to revenue but reduced profits. Ad revenue for the online business, consisting of WSJ Online, Barron's Online and MarketWatch, rose 23%. Guidance: technology and real estate advertising expected to weaken in Q3, leading to Q3 EPS "in the low teens", below the current consensus of $0.17.
• Comment on related stocks/ETFs: Here's the long case for the newspaper stocks. Dow Jones probably has the best brand of them all -- the WSJ. Resources: Dow Jones' press release, full conference call transcript, and transcripts from other newspaper companies that recently reported: NY Times, McClatchy, Tribune, Gannett, and Journal Communications.