Lee Enterprises (LEE, Financial) has disclosed a significant data breach incident where cyber attackers obtained documents with sensitive personal information. The breach, occurring in February, compromised the data of 39,779 people, as outlined in a filing with the Attorney General’s Office in Maine.
The investigation by Lee Enterprises revealed that unauthorized access and potential acquisition of data, including names and Social Security numbers, took place on February 3. This incident has raised concerns over the security of personal information and the measures in place to protect it. Lee Enterprises is taking steps to address the situation and prevent future occurrences.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Lee Enterprises Inc (LEE, Financial) is $20.00 with a high estimate of $20.00 and a low estimate of $20.00. The average target implies an
upside of 205.81%
from the current price of $6.54. More detailed estimate data can be found on the Lee Enterprises Inc (LEE) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Lee Enterprises Inc’s (LEE, Financial) average brokerage recommendation is currently 2.0, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lee Enterprises Inc (LEE, Financial) in one year is $10.57, suggesting a
upside
of 61.62% from the current price of $6.5401. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Lee Enterprises Inc (LEE) Summary page.
LEE Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lee Enterprises Inc (LEE, Financial) has shown resilience and focus in recovering from a significant cyber event that disrupted operations.
- The company is committed to its digital transformation strategy, aiming for $450 million in digital revenue by 2028.
- Digital subscription revenue has grown 40% annually over the last three years, significantly outpacing industry competitors.
- LEE launched a suite of innovative AI products to support local businesses, which is expected to accelerate digital revenue growth.
- The company has executed $40 million in annualized cost reductions, improving margins and lowering costs.
Negative Points
- The cyber incident significantly impacted quarterly financial performance, including operating revenue and advertising trends.
- Net loss for the quarter was $12 million, with minimal free cash flow.
- The cyber event hampered the ability to bill and collect from customers, affecting working capital.
- Despite recovery efforts, there are lingering impacts on the balance sheet, with increased accounts receivable and payable.
- First-half results lagged expectations, and the company is working to improve digital revenue growth in the second half of the fiscal year.
