The Dividend Daily

Publishing and education company The Washington Post Company (WPO) on Friday said its third quarter profit jumped 69% from last year, helped by smaller losses at its newspapers.

The Washington, D.C.-based company reported third quarter net income of $17.1 million, or $1.81 per share, up from $10.1 million, or $1.08 per share, in the year-ago period.

Revenue rose 2% from last year, to $1.15 billion.

Citing several cost-cutting measures WPO’s newspaper division trimmed its quarterly loss to $23.6 million, down from $82.7 million in the previous year. Ad revenue fell 28% at the company’s namesake newspaper, however.

Washington Post shares were mostly flat in morning trading Friday.

The Bottom Line
We have avoided shares of WPO since our early June coverage began last year, when the stock was trading at $596.50. The company has a 1.90% dividend yield, based on last night’s closing stock price of $452.03. The stock has technical support in the $420 price area. If the shares can rebound, we see overhead resistance around the $480-$490 price levels. We would remain on the sidelines for now.

The Washington Post Company (WPO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

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