We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
TEGNA’s (TGNA - Free Report) second-quarter 2024 non-GAAP earnings of 50 cents per share beat the Zacks Consensus Estimate by 2.04% and increased 13.6% on a year-over-year basis.
Revenues declined 2.9% year over year to $710.4 million and missed the Zacks Consensus Estimate by 1.02%. The year-over-year decline was primarily due to lower subscription and advertising and marketing services revenues, partially offset by higher political advertising dollars.
During the second quarter, TEGNA returned more than $93 million of capital to shareholders with $72 million of share repurchases, representing 5.1 million shares, and paid $21 million in dividends.
Advertising and Marketing Services revenues (51.7% of total revenues) fell 7.3% year over year to $367 million, primarily due to continued macroeconomic headwinds.
Subscription revenues (42.4% of total revenues) decreased 5.3% year over year to $301 million due to a decline in subscribers, partially offset by contractual rate increases. Political revenues (4.5% of total revenues) were $31.6 million, up from $6 million reported in the year-ago quarter.
Other revenues (1.5% of total revenues) were $10.7 million, down 7.9% year over year.
Non-GAAP adjusted EBITDA decreased 9.6% year over year to $175.7 million. Adjusted EBITDA margin contracted 180 basis points (bps) from the year-ago period to 24.7%.
Non-GAAP operating expenses (79.3% of total revenues) of $563.5 million were down 0.4% year over year. This decrease was due to a reduction in programming expenses, partially offset by a rise in compensation expenses.
Non-GAAP operating income declined 11.5% year over year to $146.9 million. The operating margin contracted 200 bps from the year-ago period to 20.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, total cash and cash equivalents were $446 million.
Total debt was $3.09 billion, and net leverage was 2.9 times as of Mar 31, 2024.
Free cash flow in the second quarter was $130.6 million compared with $113.1 million reported in the previous quarter.
Outlook
For the third quarter of 2024, Tegna expects total GAAP revenues to increase 9-12%.
Non-GAAP operating expenses are estimated to remain flat to down slightly in the third 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.
GameSquare Holdings is scheduled to report second-quarter 2024 results on Aug 14. The Zacks Consensus Estimate for GAME’s loss per share has narrowed by 2 cents to 9 cents over the past 30 days.
H&R Block is set to report second-quarter 2024 results on Aug 15. The Zacks Consensus Estimate for HRB’s earnings is pegged at $1.71 per share, which has remained unchanged over the past 30 days.
Madison Square Garden Entertainment is slated to report second-quarter 2024 results on Aug 16. The Zacks Consensus Estimate for MSGE’s loss per share is pegged at 57 cents, which has remained unchanged over the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TEGNA (TGNA) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
TEGNA’s (TGNA - Free Report) second-quarter 2024 non-GAAP earnings of 50 cents per share beat the Zacks Consensus Estimate by 2.04% and increased 13.6% on a year-over-year basis.
Revenues declined 2.9% year over year to $710.4 million and missed the Zacks Consensus Estimate by 1.02%. The year-over-year decline was primarily due to lower subscription and advertising and marketing services revenues, partially offset by higher political advertising dollars.
During the second quarter, TEGNA returned more than $93 million of capital to shareholders with $72 million of share repurchases, representing 5.1 million shares, and paid $21 million in dividends.
TEGNA Inc. Price, Consensus and EPS Surprise
TEGNA Inc. price-consensus-eps-surprise-chart | TEGNA Inc. Quote
Quarter in Details
Advertising and Marketing Services revenues (51.7% of total revenues) fell 7.3% year over year to $367 million, primarily due to continued macroeconomic headwinds.
Subscription revenues (42.4% of total revenues) decreased 5.3% year over year to $301 million due to a decline in subscribers, partially offset by contractual rate increases.
Political revenues (4.5% of total revenues) were $31.6 million, up from $6 million reported in the year-ago quarter.
Other revenues (1.5% of total revenues) were $10.7 million, down 7.9% year over year.
Non-GAAP adjusted EBITDA decreased 9.6% year over year to $175.7 million. Adjusted EBITDA margin contracted 180 basis points (bps) from the year-ago period to 24.7%.
Non-GAAP operating expenses (79.3% of total revenues) of $563.5 million were down 0.4% year over year. This decrease was due to a reduction in programming expenses, partially offset by a rise in compensation expenses.
Non-GAAP operating income declined 11.5% year over year to $146.9 million. The operating margin contracted 200 bps from the year-ago period to 20.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, total cash and cash equivalents were $446 million.
Total debt was $3.09 billion, and net leverage was 2.9 times as of Mar 31, 2024.
Free cash flow in the second quarter was $130.6 million compared with $113.1 million reported in the previous quarter.
Outlook
For the third quarter of 2024, Tegna expects total GAAP revenues to increase 9-12%.
Non-GAAP operating expenses are estimated to remain flat to down slightly in the third 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 GameSquare Holdings, Inc. (GAME - Free Report) , H&R Block (HRB - Free Report) and Madison Square Garden Entertainment Corp. (MSGE - 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.
GameSquare Holdings is scheduled to report second-quarter 2024 results on Aug 14. The Zacks Consensus Estimate for GAME’s loss per share has narrowed by 2 cents to 9 cents over the past 30 days.
H&R Block is set to report second-quarter 2024 results on Aug 15. The Zacks Consensus Estimate for HRB’s earnings is pegged at $1.71 per share, which has remained unchanged over the past 30 days.
Madison Square Garden Entertainment is slated to report second-quarter 2024 results on Aug 16. The Zacks Consensus Estimate for MSGE’s loss per share is pegged at 57 cents, which has remained unchanged over the past 30 days.