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TEGNA's (TGNA) Q4 Earnings Miss Estimates, Revenues Rise Y/Y

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TEGNA’s (TGNA - Free Report) fourth-quarter 2020 non-GAAP earnings of $1.16 per share missed the Zacks Consensus Estimate by 2.5%. However, the bottom line surged 146.8% on a year-over-year basis.

Revenues jumped 35.1% year over year to $937.6 million and beat the consensus mark by 0.5%. This year-over-year growth was driven by record political advertising revenues and continued spike in subscription revenues.

Excluding political advertising revenues, adjusted revenues increased slightly year over year.

Quarter in Detail

Advertising and Marketing services (37.5% of revenues) revenues declined 6.2% year over year to $351.9 million.

TEGNA Inc. Price, Consensus and EPS Surprise

TEGNA Inc. Price, Consensus and EPS Surprise

TEGNA Inc. price-consensus-eps-surprise-chart | TEGNA Inc. Quote


Subscription (33.5% of revenues) revenues increased 9.5% year over year to $313.7 million. The top line benefited from new station acquisitions and higher rate.

Political (28.2% of revenues) revenues were $264.1 million compared with $24.4 million in the year-ago quarter.

Other revenues (0.8% of revenues) were $7.9 million, up 2.5% year over year.

Non-GAAP adjusted EBITDA soared 83% year over year to $440.5 million. Adjusted EBITDA margin expanded to 47% compared with 34.7% in the year-ago quarter.

Non-GAAP operating expenses (58% of revenues) of $543.4 million were up 9% year over year, primarily on account of buyouts and higher programming expenses in relation to a spurt in subscription revenues.

Non-GAAP operating income jumped 101.7% year over year to $394.2 million. Operating margin expanded to 42% from 28.2% reported in the year-ago quarter.


Balance Sheet & Cash Flow

As of Dec 31, 2020, total cash was $41 million compared with $165 million as of Sep 30, 2020.

Total debt was $3.6 billion and net leverage was 3.95 times as of Dec 31, 2020.

Free cash flow in the fourth quarter was $349.8 million, up 215.4% year over year.


For first quarter of 2021, TEGNA expects GAAP revenues to be more than mid-single digits percent. Non-GAAP operating expenses more than mid-single digits percent.

For 2021, TEGNA expects net subscription profits to grow in the mid-to-high twenties percentage range.

Zacks Rank &Other Stocks to Consider

TEGNA currently has a Zacks Rank #2 (Buy).

Culp (CULP - Free Report) , Golden Entertainment (GDEN - Free Report) and Select Interior (SIC - Free Report) are some top-ranked stocks in the broader consumer & discretionary sector. All the three stocks carry the same rank as of TEGNA. You can see the complete list of today’s Zacks #1 Rank  (Strong Buy) stocks here.

Culp, Golden Entertainment and Select Interior are scheduled to report their quarterly results on Mar 3, 11 and 15, respectively.


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