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.
Why Is TEGNA Inc. (TGNA) Down 0.6% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for TEGNA Inc. (TGNA - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TEGNA Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
TEGNA Q3 Earnings Beat Estimates, Revenues Fall Y/Y
TEGNA’s third-quarter 2023 non-GAAP earnings of 39 cents per share beat the Zacks Consensus Estimate by 14.71% but decreased 40% on a year-over-year basis.
Revenues decreased 11.2% year over year to $713.3 million and missed the Zacks Consensus Estimate by 0.25%. The year-over-year decline was due to the reduction of political revenues from the mid-term election cycle last year and a fall in Advertising and Marketing Services revenues.
Since the termination of the merger agreement with Standard General in May, TEGNA has committed to more than $0.8 billion in share repurchases this year, through both ASR programs and the settlement of the merger termination fee in shares.
Quarter in Details
Subscription (53% of revenues) revenues increased 0.1% year over year to $377.9 million, driven by contractual rate increases and partially offset by subscriber declines.
Advertising and Marketing services (43.8% of revenues) revenues decreased 2.6% year over year to $312.4 million due to continued macroeconomic headwinds. However, third-quarter 2023 advertising trends saw sequential improvement from the prior quarter.
Political (1.6% of revenues) revenues were $11.6 million, down from $92.9 million reported in the year-ago quarter.
Other revenues (1.6% of revenues) were $11.3 million, down 6.5% year over year.
Non-GAAP adjusted EBITDA decreased 37.6% year over year to $165.9 million. Adjusted EBITDA margin contracted 990 basis points (bps) from the year-ago period to 23.3%.
Non-GAAP operating expenses (80.7% of revenues) of $575.7 million were up 1.5% year over year. This increase was driven by programming costs, partially offset by operational expense management improvements.
Non-GAAP operating income decreased 41.7% year over year to $137.5 million. The operating margin contracted 1,010 bps from the year-ago period to 19.3%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, total cash and cash equivalents were $553 million.
Total debt was $3 billion and net leverage was 2.61 times as of Sep 30, 2023.
Free cash flow in the third quarter was $60.1 million compared with $112 million reported in the previous quarter.
How Have Estimates Been Moving Since Then?
Estimates revision followed an upward path over the past two months.
VGM Scores
Currently, TEGNA Inc. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TEGNA Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
TEGNA Inc. is part of the Zacks Broadcast Radio and Television industry. Over the past month, Roku (ROKU - Free Report) , a stock from the same industry, has gained 23.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
Roku reported revenues of $912.02 million in the last reported quarter, representing a year-over-year change of +19.8%. EPS of -$2.33 for the same period compares with -$0.88 a year ago.
Roku is expected to post a loss of $0.65 per share for the current quarter, representing a year-over-year change of +61.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Roku. Also, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is TEGNA Inc. (TGNA) Down 0.6% Since Last Earnings Report?
A month has gone by since the last earnings report for TEGNA Inc. (TGNA - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TEGNA Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
TEGNA Q3 Earnings Beat Estimates, Revenues Fall Y/Y
TEGNA’s third-quarter 2023 non-GAAP earnings of 39 cents per share beat the Zacks Consensus Estimate by 14.71% but decreased 40% on a year-over-year basis.
Revenues decreased 11.2% year over year to $713.3 million and missed the Zacks Consensus Estimate by 0.25%. The year-over-year decline was due to the reduction of political revenues from the mid-term election cycle last year and a fall in Advertising and Marketing Services revenues.
Since the termination of the merger agreement with Standard General in May, TEGNA has committed to more than $0.8 billion in share repurchases this year, through both ASR programs and the settlement of the merger termination fee in shares.
Quarter in Details
Subscription (53% of revenues) revenues increased 0.1% year over year to $377.9 million, driven by contractual rate increases and partially offset by subscriber declines.
Advertising and Marketing services (43.8% of revenues) revenues decreased 2.6% year over year to $312.4 million due to continued macroeconomic headwinds. However, third-quarter 2023 advertising trends saw sequential improvement from the prior quarter.
Political (1.6% of revenues) revenues were $11.6 million, down from $92.9 million reported in the year-ago quarter.
Other revenues (1.6% of revenues) were $11.3 million, down 6.5% year over year.
Non-GAAP adjusted EBITDA decreased 37.6% year over year to $165.9 million. Adjusted EBITDA margin contracted 990 basis points (bps) from the year-ago period to 23.3%.
Non-GAAP operating expenses (80.7% of revenues) of $575.7 million were up 1.5% year over year. This increase was driven by programming costs, partially offset by operational expense management improvements.
Non-GAAP operating income decreased 41.7% year over year to $137.5 million. The operating margin contracted 1,010 bps from the year-ago period to 19.3%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, total cash and cash equivalents were $553 million.
Total debt was $3 billion and net leverage was 2.61 times as of Sep 30, 2023.
Free cash flow in the third quarter was $60.1 million compared with $112 million reported in the previous quarter.
How Have Estimates Been Moving Since Then?
Estimates revision followed an upward path over the past two months.
VGM Scores
Currently, TEGNA Inc. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TEGNA Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
TEGNA Inc. is part of the Zacks Broadcast Radio and Television industry. Over the past month, Roku (ROKU - Free Report) , a stock from the same industry, has gained 23.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
Roku reported revenues of $912.02 million in the last reported quarter, representing a year-over-year change of +19.8%. EPS of -$2.33 for the same period compares with -$0.88 a year ago.
Roku is expected to post a loss of $0.65 per share for the current quarter, representing a year-over-year change of +61.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Roku. Also, the stock has a VGM Score of C.