JP Morgan analysts said U.S. newspapers likely did better than expected during the first fiscal quarter of 2010, MediaBistro reported yesterday. Less drastic revenue drops, the comeback of national funding and a jump in auto classified ads may all account for the phenomenon.

Publisher Gannett Co., Inc. may see a 7.2 percent decline in ad revenue during Q1 and a 5.6 percent downward shift in 2010. The New York Times Co. may experience a 5.5 decrease throughout the year and a 8 percent fall for Q1, according to Editor & Publisher.

Meanwhile, E.W. Scripps and McClatchy may experience a 12.5 and 8.4 percent decline in ad revenue during Q1, respectively. While ad revenues may be plummeting, they are doing so at a slower pace than in 2009, E&P proposed.

Newspapers may re-emerge in a "modest" fashion with single-digit overall percentage declines, Editor & Publisher informed. The report suggested that Q1 results and adjusted estimates might offer "a little further stream" to newspaper stocks.