What caused LEE's EPS drop in Q3 2024?

Lee Enterprises' EPS dropped in Q3 2024 primarily due to ongoing challenges in the print business and slower-than-expected revenue growth from its digital operations, despite significant investments in digital transformation.

1. **Print Business Challenges**: The company experienced a 22% year-over-year decline in print revenue, which adversely affected the overall earnings per share (EPS). This decline is a result of the ongoing transition from print to digital media, which is a common challenge faced by traditional newspaper publishers.
2. **Digital Growth Not Meeting Expectations**: While Lee Enterprises has been investing heavily in digital growth, the digital revenue growth has not yet reached the level required to offset the decline in print revenue. The digital subscriber target of 771,000 for the year was not met, and the company had to revise its adjusted EBITDA outlook downward due to the underperformance of the print business.
3. **Cost Management Issues**: Despite effective cost management that led to an 8% reduction in cash costs compared to the prior year, the company's EPS was negatively impacted by the operational inefficiencies and the lagging print business. The principal amount of debt remained high at $453 million, which is a testament to the financial challenges the company is facing.

In conclusion, the drop in LEE's EPS in Q3 2024 is a result of a combination of factors including the ongoing challenges in the print business, slower-than-expected revenue growth from digital operations, and cost management issues.