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Why Is TEGNA (TGNA) Down 38.8% Since the Last Earnings Report?
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A month has gone by since the last earnings report for TEGNA Inc. (TGNA - Free Report) . Shares have lost about 38.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
TEGNA Q1 Earnings In Line, Revenues Miss Estimates
TEGNA's first-quarter 2017 net income from continuing operations was $57.7 million or $0.27 per share compared with $92.9 million or $0.42 per share in the prior-year quarter. However, quarterly adjusted earnings per share were $0.33, in line with the Zacks Consensus Estimate.
Total revenue in the reported quarter was $778.5 million, down 0.4% year over year and lagging the Zacks Consensus Estimate of $800 million.
In the reported quarter, operating expenses were $625.1 million, up 8.1% year over year. Operating income was $153.4 million, down 24.4% year over year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $211.8 million compared with $264.3 million in the year-ago quarter.
Cash Flow and Liquidity
In the first quarter of 2017, TEGNA generated $140.9 million of cash from operations compared with $683.4 million in the prior-year quarter. Free cash flow in the reported quarter was $122.9 million compared with $588.6 million in the year-ago quarter.
TEGNA’s long-term debt was $4.0 billion and total cash was $79.7 million at the end of the first quarter of 2017. During the reported quarter, the company repurchased 335,556 shares of its outstanding stock for $7.3 million. Dividends paid in the quarter totaled $30 million.
Media Segment
Total revenue of the Media segment was $446.3 million, up 0.6% year over year. Of the total, Core revenues were $224.9 million, down 9.7%. Political advertisement revenues were $2.2 million, down a whopping 86.3%. Retransmission revenues were $182.3 million, up 24.2%. Online revenues were $31.7 million, up 14.5% and Other revenues were $5.2 million, up 14.1%. Operating income was $139.6 million, down 18% year over year. Adjusted EBITDA was $160.1 million, down 20% year over year.
Digital Segment
Total revenue of the Digital segment was $332.2 million, down 1.7% year over year. Operating income was $28.8 million, down a substantial 39.1% year over year. Adjusted EBITDA was $65.6 million, down 15.4% year over year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 31% due to these changes.
At this time, TEGNA's stock has an average Growth Score of 'C', though it lags on the momentum front with an 'F'. The stock was allocated a grade of 'B' on the value side, putting it in the second quintile 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.
Based on our scores, the stock is more suitable for value investors than those looking for growth.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We expect below average returns from the stock in the next few months.
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Why Is TEGNA (TGNA) Down 38.8% Since the Last Earnings Report?
A month has gone by since the last earnings report for TEGNA Inc. (TGNA - Free Report) . Shares have lost about 38.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
TEGNA Q1 Earnings In Line, Revenues Miss Estimates
TEGNA's first-quarter 2017 net income from continuing operations was $57.7 million or $0.27 per share compared with $92.9 million or $0.42 per share in the prior-year quarter. However, quarterly adjusted earnings per share were $0.33, in line with the Zacks Consensus Estimate.
Total revenue in the reported quarter was $778.5 million, down 0.4% year over year and lagging the Zacks Consensus Estimate of $800 million.
In the reported quarter, operating expenses were $625.1 million, up 8.1% year over year. Operating income was $153.4 million, down 24.4% year over year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $211.8 million compared with $264.3 million in the year-ago quarter.
Cash Flow and Liquidity
In the first quarter of 2017, TEGNA generated $140.9 million of cash from operations compared with $683.4 million in the prior-year quarter. Free cash flow in the reported quarter was $122.9 million compared with $588.6 million in the year-ago quarter.
TEGNA’s long-term debt was $4.0 billion and total cash was $79.7 million at the end of the first quarter of 2017. During the reported quarter, the company repurchased 335,556 shares of its outstanding stock for $7.3 million. Dividends paid in the quarter totaled $30 million.
Media Segment
Digital Segment
Total revenue of the Digital segment was $332.2 million, down 1.7% year over year. Operating income was $28.8 million, down a substantial 39.1% year over year. Adjusted EBITDA was $65.6 million, down 15.4% year over year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 31% due to these changes.
TEGNA Inc. Price and Consensus
TEGNA Inc. Price and Consensus | TEGNA Inc. Quote
VGM Scores
At this time, TEGNA's stock has an average Growth Score of 'C', though it lags on the momentum front with an 'F'. The stock was allocated a grade of 'B' on the value side, putting it in the second quintile 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.
Based on our scores, the stock is more suitable for value investors than those looking for growth.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We expect below average returns from the stock in the next few months.