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TEGNA (TGNA) Down 12.1% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for TEGNA Inc. (TGNA - Free Report) . Shares have lost about 12.1% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is TGNA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
TEGNA reported impressive financial results in the fourth 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 $303.3 million or $1.40 per share compared with $97.5 million or 45 cents in the prior-year quarter. The company reported adjusted earnings of 32 cents per share, which surpassed the Zacks Consensus Estimate by a penny.
Revenues
Total revenues in the reported quarter were $490.3 million, down 10.3% on a year-over-year basis. The figure outperformed the Zacks Consensus Estimate of $488.9 million.
Operating Metrics
In fourth quarter of 2017, operating expenses were $334.5 million, down 0.6% year over year. Operating income was $155.9 million, down 25.9% year over year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $169.4 million compared with $245.7 million in the year-ago quarter.
Cash Flow & Liquidity
In the fourth quarter of 2017, TEGNA generated $35.1 million of cash from operations compared with $228.7 million in the prior-year quarter. Free cash flow in the reported quarter was $21.9 million compared with $202.4 million in the year-ago period.
TEGNA’s long-term debt outstanding was $3.0 billion and total cash was $98.8 million at the end of the reported quarter. Dividend paid out in the quarter totaled $15 million.
First-Quarter 2018 Outlook
In the first quarter of 2018, TEGNA expects total revenues (excluding the terminated digital business) to increase by 10-12% year over year driven by Olympics, Super Bowl and subscription revenue growth. On a GAAP basis, total revenues are projected to increase in high single digits year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter.
At this time, TGNA has a poor Growth Score of F. Its Momentum is doing a lot better with a C. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, TGNA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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TEGNA (TGNA) Down 12.1% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for TEGNA Inc. (TGNA - Free Report) . Shares have lost about 12.1% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is TGNA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
TEGNA Tops Q4 Earnings Estimates, Issues 1Q18 View
TEGNA reported impressive financial results in the fourth 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 $303.3 million or $1.40 per share compared with $97.5 million or 45 cents in the prior-year quarter. The company reported adjusted earnings of 32 cents per share, which surpassed the Zacks Consensus Estimate by a penny.
Revenues
Total revenues in the reported quarter were $490.3 million, down 10.3% on a year-over-year basis. The figure outperformed the Zacks Consensus Estimate of $488.9 million.
Operating Metrics
In fourth quarter of 2017, operating expenses were $334.5 million, down 0.6% year over year. Operating income was $155.9 million, down 25.9% year over year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $169.4 million compared with $245.7 million in the year-ago quarter.
Cash Flow & Liquidity
In the fourth quarter of 2017, TEGNA generated $35.1 million of cash from operations compared with $228.7 million in the prior-year quarter. Free cash flow in the reported quarter was $21.9 million compared with $202.4 million in the year-ago period.
TEGNA’s long-term debt outstanding was $3.0 billion and total cash was $98.8 million at the end of the reported quarter. Dividend paid out in the quarter totaled $15 million.
First-Quarter 2018 Outlook
In the first quarter of 2018, TEGNA expects total revenues (excluding the terminated digital business) to increase by 10-12% year over year driven by Olympics, Super Bowl and subscription revenue growth. On a GAAP basis, total revenues are projected to increase in high single digits year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter.
TEGNA Inc. Price and Consensus
TEGNA Inc. Price and Consensus | TEGNA Inc. Quote
VGM Scores
At this time, TGNA has a poor Growth Score of F. Its Momentum is doing a lot better with a C. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, TGNA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.