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TEGNA (TGNA) Q1 Earnings in Line, Revenues Miss Estimates

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TEGNA Inc. (TGNA - Free Report) reported mixed financial results in the first quarter of 2017. The bottom line met the Zacks Consensus Estimate while the top line fell below the mark.

Net income from continuing operations was $57.7 million or 27 cents per share compared with $92.9 million or 42 cents per share in the prior-year quarter. However, quarterly adjusted earnings per share were 33 cents, 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.

TEGNA Inc. Price, Consensus and EPS Surprise

 

TEGNA Inc. Price, Consensus and EPS Surprise | TEGNA Inc. Quote

TEGNA competes in the highly competitive broadcast radio and television industry. Its major competitors include CBS Corp. , Gray Television Inc. (GTN - Free Report) and Entercom Communications Corp. to name a few. TEGNA currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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