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TEGNA (TGNA) to Report Q1 Earnings: What's in the Cards?
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Virginia-based, publicly traded broadcast and digital media company, TEGNA Inc. (TGNA - Free Report) is slated to report first-quarter 2017 results on May 9.
Last quarter, the company delivered a positive earnings surprise of 12.12%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average positive surprise being 9.00%.
Let’s see how things are shaping up for this announcement.
Factors at Play
TEGNA offers a dynamic portfolio of media and digital businesses in the U.S. Presently, the company’s media division owns 46 television stations and is the largest independent television station group of major network affiliates in the top 25 markets. Being focused more on content creation rather than TV broadcasting, the media division shelters the company from the prevailing cord-cutting threats in the pay-TV industry.
TEGNA's strategic decision to spin-off its auto-sales website Cars.com and sell of its job-hunting unit, CareerBuilder, should generate more value for investors than the current stock price of the company. Both broadcast TV and digital platforms are rapidly evaluating. Management has decided to expand its core broadcast TV business.
We are impressed with TEGNA’s board of directors’ decision to reward its stockholders with a dividend of 14 cents per share. The dividend was paid on Apr 3, 2017 to stockholders of record at the closure of business on Mar 10, 2017.
Amid such booming prospects, over the past three months, the stock has grown 7.7%, outshining the Zacks categorized Broadcast Radio and Television industry’s gain of 4.7%.
However, the U.S. broadcast TV industry has long been grappling with declining advertising revenues and global economic volatility. In addition, the broadcast TV industry is categorized as an intensely competitive one. TEGNA’s major competitors include CBS Corp. , Gray Television Inc. (GTN - Free Report) and Entercom Communications Corp. to name a few.
Soft advertising market is also a near-term headwind for the company. Meanwhile, the media and entertainment industry is one of the rapidly changing industries in terms of technical changes in content creation, aggregation, and distribution platforms. Such technological changes and their latest upgrades add to the company’s programming costs and expenses, which are likely to affect the bottom line.
Earnings Whispers
Our proven model does not conclusively show that TEGNA is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP:TEGNA has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 33 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TEGNA has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here is a company from the Zacks-categorized broader Consumer Discretionary sector — which houses TEGNA— that has the right combination of elements to post an earnings beat this quarter.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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TEGNA (TGNA) to Report Q1 Earnings: What's in the Cards?
Virginia-based, publicly traded broadcast and digital media company, TEGNA Inc. (TGNA - Free Report) is slated to report first-quarter 2017 results on May 9.
Last quarter, the company delivered a positive earnings surprise of 12.12%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average positive surprise being 9.00%.
Let’s see how things are shaping up for this announcement.
Factors at Play
TEGNA offers a dynamic portfolio of media and digital businesses in the U.S. Presently, the company’s media division owns 46 television stations and is the largest independent television station group of major network affiliates in the top 25 markets. Being focused more on content creation rather than TV broadcasting, the media division shelters the company from the prevailing cord-cutting threats in the pay-TV industry.
TEGNA's strategic decision to spin-off its auto-sales website Cars.com and sell of its job-hunting unit, CareerBuilder, should generate more value for investors than the current stock price of the company. Both broadcast TV and digital platforms are rapidly evaluating. Management has decided to expand its core broadcast TV business.
We are impressed with TEGNA’s board of directors’ decision to reward its stockholders with a dividend of 14 cents per share. The dividend was paid on Apr 3, 2017 to stockholders of record at the closure of business on Mar 10, 2017.
Amid such booming prospects, over the past three months, the stock has grown 7.7%, outshining the Zacks categorized Broadcast Radio and Television industry’s gain of 4.7%.
However, the U.S. broadcast TV industry has long been grappling with declining advertising revenues and global economic volatility. In addition, the broadcast TV industry is categorized as an intensely competitive one. TEGNA’s major competitors include CBS Corp. , Gray Television Inc. (GTN - Free Report) and Entercom Communications Corp. to name a few.
Soft advertising market is also a near-term headwind for the company. Meanwhile, the media and entertainment industry is one of the rapidly changing industries in terms of technical changes in content creation, aggregation, and distribution platforms. Such technological changes and their latest upgrades add to the company’s programming costs and expenses, which are likely to affect the bottom line.
Earnings Whispers
Our proven model does not conclusively show that TEGNA is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: TEGNA has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 33 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: TEGNA has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
TEGNA Inc. Price and EPS Surprise
TEGNA Inc. Price and EPS Surprise | TEGNA Inc. Quote
Stock to Consider
Here is a company from the Zacks-categorized broader Consumer Discretionary sector — which houses TEGNA— that has the right combination of elements to post an earnings beat this quarter.
Tribune Media Company is set to release first-quarter 2017 results on May 10. The company has an Earnings ESP of +28.57% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>