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TEGNA (TGNA) Beats Earnings, Revenue Estimates in Q3

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TEGNA Inc. (TGNA - Free Report) reported impressive financial results in the third quarter of 2017, wherein both the top line and the bottom line outpaced the Zacks Consensus Estimate.

Net Income

Net income from continuing operations was $50.8 million or 23 cents per share compared with $76.7 million or 35 cents per share in the prior-year quarter. The company reported adjusted earnings of 23 cents per share, a penny higher than the Zacks Consensus Estimate.

TEGNA Inc. Price, Consensus and EPS Surprise

 

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

Revenues

Total revenues in the reported quarter were $464.3 million,outperforming the Zacks Consensus Estimate of $460.9 million.

Operating Metrics

In the third quarter of 2017, operating expenses were $347.4 million, reflecting an increase of 4.1% year over year. Operating income was $116.9 million, declining 37.1% year over year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $145 million compared with $222.9 million in the year-ago quarter.

Cash Flow

In the third quarter of 2017, TEGNA generated $111.9 million of cash from operations compared with $225.5 million in the prior-year quarter. Free cash flow in the reported quarter was $97.7 million compared with $197 million in the year-ago period.

Liquidity

TEGNA’s long-term debt outstanding was $3.3 billion and total cash was $383 million at the end of the third quarter of 2017. Dividends paid in the quarter totaled $15 million.

Fourth Quarter 2017 Guidance

The company expects its non-GAAP total revenues to increase in the high single to low double-digits year-over-year. On a GAAP basis, total revenues are projected to decline in the high single to low double-digits year over year.

TEGNA operates in an intensely competitive broadcast radio and television industry, with major competitors such as CBS Corp. , Gray Television Inc. (GTN - Free Report) and Entercom Communications Corp. . Notably, the U.S. broadcast TV industry has long been grappling with declining advertising revenues and increasing cord-cutting in the cable TV industry. TEGNA 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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