Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Martha Stewart Living Omnimedia reported impressive third quarter gains on Tuesday. Sales rose to $61 million, up from last year's $41.3 million. Its operating loss also shrank to $25.2 million, down from $26.1 million in 3Q05. On a per share basis, the deficit came out to 13 cents a share, considerably better than Wall Street's estimate of 18 cents a share. MSO executives attribute the improved sales to an increase in magazine advertising revenue. The company appears to be charging ahead, in spite of having to deal with the leftover taint of Ms. Stewart's incarceration. The company set aside $18.2 million to settle a $30 million dollar class action suit against Ms. Stewart and two other company authors, which was connected to her securities fraud imbroglio. The company's namesake is now an employee, having been temporarily barred from maintaining an executive role due to her conviction. The company will soon be celebrating the 15th anniversary of Martha Stewart Living, its flagship magazine. MSO hopes to publish its new magazine, Blueprint, 6 times in the coming year.
Related links: Conference Call Transcript: Martha Stewart Living Omnimedia Q3 2006 • With Martha's Troubles Behind Her, MSO Should Recover • MarketWatch.com: Martha Stewart loss narrows as ad revenues spike • Business Week: The Reinvention Of Martha Stewart
Potentially impacted stocks: Martha Stewart Living Omnimedia (NYSE:MSO)
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