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 (TGNA) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
TEGNA’s (TGNA - Free Report) first-quarter 2024 non-GAAP earnings of 45 cents per share beat the Zacks Consensus Estimate by 4.65% but decreased 4.3% on a year-over-year basis.
Revenues declined 3.5% year over year to $714.25 million and missed the Zacks Consensus Estimate by 0.51%. The year-over-year decline was due to lower subscription revenues, which were adversely impacted by a temporary disruption of service with a distribution partner, partially offset by higher political advertising revenues.
During the first quarter, TEGNA returned more than $100 million of capital to shareholders with $82 million of share repurchases, representing 5.7 million shares, and paid $20 million in dividends.
Subscription revenues (52.5% of total revenues) decreased 9.4% year over year to $375.3 million due to a decline in subscribers and a temporary disruption of service with a distribution partner.
Advertising and Marketing Services revenues (41.8% of total revenues) dipped 3% year over year to $298.7 million, primarily due to continued macroeconomic headwinds.
Political revenues (3.9% of total revenues) were $27.8 million, up from $5.3 million reported in the year-ago quarter.
Other revenues (1.7% of total revenues) were $12.4 million, down 3.9% year over year.
Non-GAAP adjusted EBITDA plunged 15% year over year to $174.2 million. Adjusted EBITDA margin contracted 330 basis points (bps) from the year-ago period to 24.4%.
Non-GAAP operating expenses (79.5% of total revenues) of $568 million were up 0.7% year over year. This increase was due to a rise in compensation expenses, partially offset by a reduction in programming expenses.
Non-GAAP operating income declined 17.1% year over year to $146.2 million. The operating margin contracted 330 bps from the year-ago period to 20.5%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, total cash and cash equivalents were $431 million.
Total debt was $2.66 billion and net leverage was 2.8 times as of Dec 31, 2023.
Free cash flow in the first quarter was $113.1 million compared with $130 million reported in the previous quarter.
Outlook
For the second quarter of 2024, Tegna expects total GAAP revenues to decline in the low-to-mid single digits.
Non-GAAP operating expenses are estimated to remain flat in the second quarter.
For 2024, TGNA expects the net leverage ratio to be below 3x. The company expects 2024/2025 two-year adjusted FCF between $900 million and $1.1 billion.
Shares of Roblox have lost 14.6% year to date. The Zacks Consensus Estimate for RBLX’s first-quarter loss per share has widened by a penny to 53 cents over the past 30 days.
Shares of SharkNinja have jumped 31% year to date. The Zacks Consensus Estimate for SN’s earnings is pegged at 95 cents per share, up 4.4% over the past 30 days.
Shares of TTWO have lost 9.3% year to date. The Zacks Consensus Estimate for TTWO’s earnings is pegged at 22 cents per share, which has remained unchanged over the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TEGNA (TGNA) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
TEGNA’s (TGNA - Free Report) first-quarter 2024 non-GAAP earnings of 45 cents per share beat the Zacks Consensus Estimate by 4.65% but decreased 4.3% on a year-over-year basis.
Revenues declined 3.5% year over year to $714.25 million and missed the Zacks Consensus Estimate by 0.51%. The year-over-year decline was due to lower subscription revenues, which were adversely impacted by a temporary disruption of service with a distribution partner, partially offset by higher political advertising revenues.
During the first quarter, TEGNA returned more than $100 million of capital to shareholders with $82 million of share repurchases, representing 5.7 million shares, and paid $20 million in dividends.
TEGNA Inc. Price, Consensus and EPS Surprise
TEGNA Inc. price-consensus-eps-surprise-chart | TEGNA Inc. Quote
Quarter in Details
Subscription revenues (52.5% of total revenues) decreased 9.4% year over year to $375.3 million due to a decline in subscribers and a temporary disruption of service with a distribution partner.
Advertising and Marketing Services revenues (41.8% of total revenues) dipped 3% year over year to $298.7 million, primarily due to continued macroeconomic headwinds.
Political revenues (3.9% of total revenues) were $27.8 million, up from $5.3 million reported in the year-ago quarter.
Other revenues (1.7% of total revenues) were $12.4 million, down 3.9% year over year.
Non-GAAP adjusted EBITDA plunged 15% year over year to $174.2 million. Adjusted EBITDA margin contracted 330 basis points (bps) from the year-ago period to 24.4%.
Non-GAAP operating expenses (79.5% of total revenues) of $568 million were up 0.7% year over year. This increase was due to a rise in compensation expenses, partially offset by a reduction in programming expenses.
Non-GAAP operating income declined 17.1% year over year to $146.2 million. The operating margin contracted 330 bps from the year-ago period to 20.5%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, total cash and cash equivalents were $431 million.
Total debt was $2.66 billion and net leverage was 2.8 times as of Dec 31, 2023.
Free cash flow in the first quarter was $113.1 million compared with $130 million reported in the previous quarter.
Outlook
For the second quarter of 2024, Tegna expects total GAAP revenues to decline in the low-to-mid single digits.
Non-GAAP operating expenses are estimated to remain flat in the second quarter.
For 2024, TGNA expects the net leverage ratio to be below 3x. The company expects 2024/2025 two-year adjusted FCF between $900 million and $1.1 billion.
Zacks Rank & Key Picks
TEGNA carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the Consumer Discretionary sector are Roblox (RBLX - Free Report) , SharkNinja, Inc. (SN - Free Report) and Take-Two Interactive Software (TTWO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Roblox have lost 14.6% year to date. The Zacks Consensus Estimate for RBLX’s first-quarter loss per share has widened by a penny to 53 cents over the past 30 days.
Shares of SharkNinja have jumped 31% year to date. The Zacks Consensus Estimate for SN’s earnings is pegged at 95 cents per share, up 4.4% over the past 30 days.
Shares of TTWO have lost 9.3% year to date. The Zacks Consensus Estimate for TTWO’s earnings is pegged at 22 cents per share, which has remained unchanged over the past 30 days.