We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TEGNA’s (TGNA - Free Report) second-quarter 2021 non-GAAP earnings of 50 cents per share beat the Zacks Consensus Estimate by 2.04%. The bottom line surged 316.7% on a year-over-year basis.
Revenues increased 26.9% year over year to $732.9 million and beat the consensus mark by 0.33%. This year-over-year growth was driven by record second-quarter growth in subscription revenues and advertising and marketing services revenues.
Advertising and Marketing services (46.5% of revenues) revenues increased 48.8% year over year to $340.9 million.
Subscription (51.2% of revenues) revenues increased 16% year over year to $375.1 million due to rate increases.
Political (1.3% of revenues) revenues were $9.6 million, down 45.4% year over year
Other revenues (1% of revenues) were $7.4 million, down 2.2% year over year.
Non-GAAP adjusted EBITDA increased 83% year over year to $227.7 million. Adjusted EBITDA margin expanded 950 basis points (bps) to 31.1%. Adjusted EBITDA growth reflects strong operational performance of TEGNA’s stations.
Non-GAAP operating expenses (73.2% of revenues) of $536.8 million were up 10.2% year over year, primarily on account of higher programming expenses in relation to an increase in subscription revenues.
Non-GAAP operating income surged 116.8% year over year to $196.1 million. Operating margin expanded to 26.8% from 15.7% in the year-ago period.
Balance Sheet & Cash Flow
As of Jun 30, 2021, total cash was $57 million compared with $13 million as of Mar 31, 2021.
Total debt was $3.5 billion and net leverage was 3.64 times as of Jun 30, 2021.
Free cash flow in the second quarter was $91.9 million, down 4.4% year over year. Free cash flow was offset by approximately $118 million in income tax payments.
Guidance
For the third quarter of 2021, TEGNA expects GAAP revenues to increase in over low-single digit percent. Non-GAAP operating expenses are expected to increase in mid-to-high single digit percent.
For 2021, TEGNA expects net subscription profits to grow in the mid-to-high teens percentage range.
The company expects free cash flow as a percentage of 2020-2021 revenues of 21.5%- 22%.
The long-term earnings growth rate for Columbia Sportswear Company, Crocs and Boyd Gaming Corporation is currently pegged at 33.5%, 15%, and 40.7%, respectively.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TEGNA (TGNA) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
TEGNA’s (TGNA - Free Report) second-quarter 2021 non-GAAP earnings of 50 cents per share beat the Zacks Consensus Estimate by 2.04%. The bottom line surged 316.7% on a year-over-year basis.
Revenues increased 26.9% year over year to $732.9 million and beat the consensus mark by 0.33%. This year-over-year growth was driven by record second-quarter growth in subscription revenues and advertising and marketing services revenues.
TEGNA Inc. Price, Consensus and EPS Surprise
TEGNA Inc. price-consensus-eps-surprise-chart | TEGNA Inc. Quote
Quarter in Detail
Advertising and Marketing services (46.5% of revenues) revenues increased 48.8% year over year to $340.9 million.
Subscription (51.2% of revenues) revenues increased 16% year over year to $375.1 million due to rate increases.
Political (1.3% of revenues) revenues were $9.6 million, down 45.4% year over year
Other revenues (1% of revenues) were $7.4 million, down 2.2% year over year.
Non-GAAP adjusted EBITDA increased 83% year over year to $227.7 million. Adjusted EBITDA margin expanded 950 basis points (bps) to 31.1%. Adjusted EBITDA growth reflects strong operational performance of TEGNA’s stations.
Non-GAAP operating expenses (73.2% of revenues) of $536.8 million were up 10.2% year over year, primarily on account of higher programming expenses in relation to an increase in subscription revenues.
Non-GAAP operating income surged 116.8% year over year to $196.1 million. Operating margin expanded to 26.8% from 15.7% in the year-ago period.
Balance Sheet & Cash Flow
As of Jun 30, 2021, total cash was $57 million compared with $13 million as of Mar 31, 2021.
Total debt was $3.5 billion and net leverage was 3.64 times as of Jun 30, 2021.
Free cash flow in the second quarter was $91.9 million, down 4.4% year over year. Free cash flow was offset by approximately $118 million in income tax payments.
Guidance
For the third quarter of 2021, TEGNA expects GAAP revenues to increase in over low-single digit percent. Non-GAAP operating expenses are expected to increase in mid-to-high single digit percent.
For 2021, TEGNA expects net subscription profits to grow in the mid-to-high teens percentage range.
The company expects free cash flow as a percentage of 2020-2021 revenues of 21.5%- 22%.
Zacks Rank & Stocks to Consider
TEGNA currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader consumer discretionary sector are Columbia Sportswear Company (COLM - Free Report) , Crocs, Inc. (CROX - Free Report) and Boyd Gaming Corporation (BYD - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Columbia Sportswear Company, Crocs and Boyd Gaming Corporation is currently pegged at 33.5%, 15%, and 40.7%, respectively.