Shares of Nexstar Media Group, Inc. ( NXST ) have been a moderate performer over the past year, gaining about 12%. However, the stock has been steadily declining since announcing a deal to buy TEGNA Inc. ( TGNA ) earlier thisOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Di ...

Shares of Nexstar Media Group, Inc. ( NXST ) have been a moderate performer over the past year, gaining about 12%. However, the stock has been steadily declining since announcing a deal to buy TEGNA Inc. ( TGNA ) earlier thisOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Di ...

Core Insights - TEGNA Inc. reported a revenue of $650.79 million for the quarter ended September 2025, reflecting a year-over-year decline of 19.3% and an EPS of $0.33 compared to $0.94 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $659.69 million, resulting in a surprise of -1.35%, while the EPS also missed the consensus estimate of $0.35 by -5.71% [1] Revenue Breakdown - Political revenue was reported at $9.88 million, below the two-analyst average estimate of $10.65 million, marking a significant year-over-year decline of 92.2% [4] - Distribution revenue amounted to $358.45 million, slightly below the average estimate of $360.72 million from two analysts [4] - Advertising & Marketing Services revenue was $273.38 million, compared to the estimated $279.23 million, representing a year-over-year decrease of 12.7% [4] - Other revenues were reported at $9.08 million, slightly below the average estimate of $9.15 million, with a year-over-year decline of 19.9% [4] Stock Performance - TEGNA's shares have returned -0.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.3% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - TEGNA Inc. reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.35 per share, and down from $0.94 per share a year ago, representing an earnings surprise of -5.71% [1] - The company posted revenues of $650.79 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.35%, and down from $806.83 million year-over-year [2] - TEGNA shares have increased by approximately 9.1% since the beginning of the year, compared to the S&P 500's gain of 14.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $703.79 million, and for the current fiscal year, it is $1.62 on revenues of $2.72 billion [7] - The estimate revisions trend for TEGNA was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Broadcast Radio and Television industry, to which TEGNA belongs, is currently in the top 38% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Financial Performance - Revenues for Q3 2025 were $650,791,000, a decrease of 19.3% compared to $806,827,000 in Q3 2024[11] - Operating income for the nine months ended September 30, 2025, was $323,557,000, down 36.5% from $509,312,000 in the same period of 2024[11] - Net income for Q3 2025 was $37,116,000, a decline of 74.8% from $147,188,000 in Q3 2024[11] - Earnings per share for Q3 2025 were $0.23, compared to $0.89 in Q3 2024, reflecting a decrease of 74.2%[11] - Adjusted EBITDA for Q3 2025 was $130.7 million, a decline of 51.6% from $269.5 million in Q3 2024[25] - Total comprehensive income for Q3 2025 was $37.6 million, compared to $148.6 million in Q3 2024[25] - Net income for the nine months ended September 30, 2025, was $163,325, a decrease of 60.0% compared to $418,479 in 2024[16] - Total comprehensive income for the quarter ended September 30, 2025, was $37,612, compared to $148,560 in 2024, reflecting a significant decline[18] Cash Flow and Liquidity - Cash flow from operating activities for the nine months ended September 30, 2025, was $218,625,000, down from $435,216,000 in the same period of 2024[16] - Cash and cash equivalents at the end of Q3 2025 were $232,775,000, a decrease of 56.6% from $536,253,000 at the end of Q3 2024[16] - As of September 30, 2025, cash and cash equivalents totaled $232.8 million, with unused borrowing capacity of $738.2 million under a $750 million revolving credit facility[52] - The balance of cash and cash equivalents at the end of the period was $232,775, a decrease of 56.6% from $536,253 at the end of September 2024[16] Debt and Liabilities - Total liabilities decreased to $3,691,286,000 as of September 30, 2025, from $4,301,488,000 at the end of 2024, representing a reduction of 14.2%[9] - Long-term debt decreased to $2,530,015,000 as of September 30, 2025, from $3,076,451,000 at the end of 2024, a reduction of 17.8%[9] - The fair value of total debt decreased to $2.54 billion as of September 30, 2025, from $2.98 billion on December 31, 2024, primarily due to early repayment of $550 million unsecured notes[60] - The company repaid $550,000,000 in debt during the nine months ended September 30, 2025[16] Equity and Shareholder Returns - The balance of total equity as of September 30, 2025, was $3.1 billion, an increase from $3.0 billion as of June 30, 2025[20] - Dividends declared were $0.125 per share, totaling $20.1 million for Q3 2025[25] - TEGNA's retained earnings increased to $8.59 billion as of September 30, 2025, compared to $8.55 billion at the end of 2024, reflecting a growth of 0.5%[9] Mergers and Acquisitions - On August 18, 2025, TEGNA Inc. entered into a Merger Agreement with Nexstar Media Group, Inc.[27] - The Merger Agreement stipulates that TEGNA's common stock will be converted into cash at $22.00 per share at the Effective Time of the Merger[28] - The Merger is expected to close in the second half of 2026, pending stockholder approval and regulatory approvals[29] - TEGNA will pay Nexstar a termination fee of $120 million under certain circumstances if the Merger Agreement is terminated[30] Operational Expenses - Programming expenses for Q3 2025 were $247.6 million, an increase of 1.0% from $243.4 million in Q3 2024[25] - Employee compensation costs for Q3 2025 were $172.0 million, down 4.0% from $182.8 million in Q3 2024[25] - The company incurred $0.2 million in expenses related to a commercial agreement with MadHive in Q3 2025, significantly lower than $16.4 million in Q3 2024[71] Impairments and Provisions - A $2.1 million impairment charge was recognized in the third quarter of 2025 related to other equity investments[47] - As of September 30, 2025, the allowance for doubtful accounts increased to $4.5 million from $2.8 million as of December 31, 2024[37] Legal Matters - The company has ongoing litigation matters but does not expect any material liability from these proceedings[70] - TEGNA collectively agreed to pay $48 million in settlements with co-defendants while denying any liability or wrongdoing[68] - TEGNA is involved in ongoing antitrust litigation concerning local television advertising practices, with claims asserted against it deemed without merit[66][69]

Revenue Performance - Total company revenue decreased 19% to $651 million compared to $806 million in Q3 2024[3] - Distribution revenue decreased 1% to $358 million, impacted by subscriber declines[3] - Advertising and marketing services (AMS) revenue decreased 12% to $273 million due to macroeconomic challenges and the absence of Summer Olympic games[3] - Total revenues for the nine months ended September 30, 2025, were $2,005,885, a decrease of 10% compared to $2,231,442 in 2024[16] - Total revenues for the quarter ended September 30, 2025, were $650,791, a decline of 19% from $806,827 in 2024[17] Income and Earnings - GAAP net income attributable to TEGNA Inc. was $37 million, a 75% decrease from $147 million in Q3 2024[15] - GAAP earnings per diluted share were $0.23, down 74% from $0.89 in the same quarter last year[15] - Net income attributable to TEGNA Inc. for the nine months ended September 30, 2025, was $163,709, reflecting a 61% decline from $419,152 in 2024[16] - Basic earnings per share dropped to $1.01 for the nine months ended September 30, 2025, down 59% from $2.44 in 2024[16] - Earnings per share (diluted) for the nine months ended September 30, 2025, was $1.00, down from $2.44 in 2024, reflecting a decline of 59.0%[27] Operating Performance - Total company Adjusted EBITDA decreased 52% to $131 million, primarily due to lower political advertising revenue[3] - Adjusted EBITDA for the nine months ended September 30, 2025, was $417,862,000, down from $619,417,000 in 2024, reflecting a decline of 32.5%[27] - Operating income decreased by 36% to $323,557 for the nine months ended September 30, 2025, down from $509,312 in 2024[16] - Operating income for the nine months ended September 30, 2025, was $345,074,000, compared to $533,601,000 in 2024, a decrease of 35.3%[27] - Adjusted operating income (non-GAAP) for the quarter ended September 30, 2025, was $106,824,000, compared to $240,493,000 in 2024, a decrease of 55.6%[27] Cash Flow and Debt - Net cash flow from operations was $59 million, with Adjusted Free Cash Flow at $64 million[3] - Cash and cash equivalents totaled $233 million at the end of Q3 2025, with net leverage at 2.9x[7] - Adjusted free cash flow for the quarter ended September 30, 2025, was $64,332,000, compared to $222,404,000 year-to-date, indicating a significant reduction in cash flow[28] - Total outstanding principal debt as of September 30, 2025, was $2,540,000,000, with net debt calculated at $2,307,225,000 after accounting for cash and cash equivalents[30] - The net leverage ratio as of September 30, 2025, was 2.9x, indicating the company's debt levels relative to its earnings[32] M&A Activity - TEGNA has entered into a definitive agreement with Nexstar Media Group for acquisition at $22.00 per share, valuing the transaction at $6.2 billion[4] - TEGNA has suspended share repurchases and will continue to pay regular quarterly dividends until the transaction closes[5] - The company incurred M&A-related costs of $12,368,000 for the nine months ended September 30, 2025, compared to $2,290,000 in 2024, indicating increased expenses related to mergers and acquisitions[27] Other Financial Metrics - Political revenue for the nine months ended September 30, 2025, plummeted by 88% to $21,689 from $185,789 in 2024[17] - Advertising & Marketing Services revenue for the nine months ended September 30, 2025, was $847,631, a decrease of 6% from $904,299 in 2024[17] - Total operating expenses for the nine months ended September 30, 2025, were $1,682,328, a decrease of 2% compared to $1,722,130 in 2024[16] - Interest income increased by 20% to $22,176 for the nine months ended September 30, 2025, compared to $18,469 in 2024[16] - The company reported a net loss attributable to redeemable noncontrolling interest of $384 for the nine months ended September 30, 2025, down 43% from $673 in 2024[16] - Retention costs for cash in the nine months ended September 30, 2025, amounted to $2,974,000, reflecting ongoing investment in employee retention strategies[28]

As previously announced on August 19, 2025, TEGNA Inc. and Nexstar Media Group entered into a definitive agreement, under which Nexstar will acquire all outstanding shares of TEGNA for $22.00 per share in a cash transaction valued at $6.2 billion Proposed transaction is expected to close by the second half of 2026, subject to customary closing conditions including TEGNA shareholder and regulatory approvals TYSONS, Va., Nov. 10, 2025 (GLOBE NEWSWIRE) -- TEGNA Inc. (NYSE: TGNA) today announced financial resul ...

Core Viewpoint - Nexstar Media Group is progressing towards closing its $6.2 billion acquisition of Tegna by the second half of 2026, which would significantly reshape the local broadcast sector in the U.S. [1][2] Financial Performance - Nexstar reported third-quarter revenue of $1.2 billion, a decrease of 12% from the same period last year, with earnings per share at $2.14, down from $5.63, falling short of analysts' expectations of $4.51 [3][4]. Acquisition Progress - The company is optimistic about the acquisition, with Tegna filing its proxy statement and a shareholder vote scheduled for November 18. Nexstar has begun engaging with regulatory agencies and submitted initial paperwork [5]. - The U.S. Court of Appeals for the Eighth Circuit's ruling last summer, which vacated the "top four" ownership ban, has contributed to Nexstar's optimism regarding the acquisition [5]. Regulatory Environment - The FCC plans to review the current ownership cap in 2026, but it remains uncertain if the agency can lift restrictions without Congressional intervention. The outcome of the mid-term elections could impact the Nexstar-Tegna deal [6]. Industry Outlook - Nexstar's CEO emphasized the need for strong companies in the industry and expressed confidence that Nexstar would lead the future of local broadcasting through financial strength and innovation [3][7]. - The company has identified nine markets where it could introduce additional local news programming, enhancing its content offerings [7]. CW Network Performance - The CW network, in which Nexstar acquired a controlling stake in 2022, has reduced its losses and anticipates breaking even by mid-2026, with sports programming now constituting 40% of its content [8].

Core Insights - The U.S. Department of Justice is reviewing Nexstar Media's $3.54 billion acquisition of Tegna, which would significantly enhance Nexstar's position in the local television market [1] Group 1 - The acquisition aims to create a local-TV powerhouse by combining Nexstar Media and Tegna [1] - The Department of Justice has requested additional information and documents related to the deal [1]

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