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TEGNA (TGNA) Estimates Record Q1 Earnings, Raises 2021 View

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TEGNA’s (TGNA - Free Report) shares inched up 0.6% to close at $20.43 on Apr 14 after it announced preliminary estimates for the first quarter of 2021.

The company expects revenues of $727 million, up 6% year over year. Moreover, GAAP earnings are anticipated to be 52 cents per share.

The Zacks Consensus Estimate for revenues and earnings are pegged at $714.7 million and 46 cents per share, up 4.5% and 7%, respectively.

Moreover, adjusted EBITDA is expected to be $231 million, up 9% year over year.

Markedly, TEGNA’s shares have been up 46.5% year to date, outperforming the Zacks Broadcast Radio and Television industry’s rally of 13.8%.

Year-to-Date Performance

 

The top-line growth is expected to be driven by continued growth in subscription revenues and stronger-than-expected advertising and marketing services (“AMS”) revenues.

Markedly, in fourth-quarter 2020, AMS (37.5% of revenues) revenues declined 6.2% year over year to $351.9 million. 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.

Additionally, free cash flow is expected to be $159 million, up 12% year over year.

TEGNA is set to report first-quarter 2021 results on May 10.

Raises 2021 Guidance

For 2021, TEGNA reaffirmed its guidance. The company expects subscription revenue growth of mid-high teens percent over 2020.

Moreover, corporate expenses are expected between $44 and $48 million.

Additionally, net leverage ratio is expected to be low 3x for 2021.

Further, for the second quarter of 2021, TEGNA expects revenues to grow in the mid-to-high twenties range. Operating expenses are expected to increase low-double digits percent.

Zacks Rank & Stocks to Consider

Currently, TEGNA has a Zacks Rank #2 (Buy).

Better-ranked stocks in the broader consumer discretionary sector include Mattel (MAT - Free Report) , Nextstar Media (NXST - Free Report) and Fox (FOXA - Free Report) . All three sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mattel, Nextstar Media and Fox are scheduled to report their quarterly results on Apr 22, May 4 and May 10, respectively.

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