West Australian Newspaper Holdings (WAN) is a leading media group in WA, whose flagship product is The West Australian daily newspaper. WAN’s recent 3Q10 results make it one of the current stocks to watch.
WAN’s net profit was up 14.4% from the previous quarter, which was largely in line with expectations. Revenue increased 6.7% on-quarter, but declined 4.7% from a year ago.
The result was largely due to improving advertising revenue, and solid management of WAN’s cost base.
Although management gave an assessment of the operating outlook for the remainder of FY10, the lack of guidance disappointed the market, with WAN’s share price dropping 2.2% on the day of the announcement.
The drop in the share price was likely attributable to the result coming in below analyst expectations.
WAN is one of the Australian stocks to watch because it will be interesting to see how its share price will track now leading up to the next earnings update.