After underperforming much of the past year, shares of TEGNA (NYSE: TGNA ) have rallied substantially over the past two months, boosted by elevated political spending and a better than expected set of Q3 results. I last covered shares inOver 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! ...

TEGNA’s (TGNA) third-quarter 2024 non-GAAP earnings of 94 cents per share beat the Zacks Consensus Estimate by 13.25% and increased 141.02% on a year-over-year basis.TGNA’s earnings beat the Zacks Consensus Estimate in three of the four trailing quarters, while missing once, with the average surprise being 3.22%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues increased 13% year over year to $806.8 million, beating the Zacks Consensus Estimate by 1.82%. The year-over-year incr ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) TEGNA's financial statements reflect asset growth, increased net income, and improved operating cash flow for Q3 and the first nine months of 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$7.20 billion** by September 30, 2024, driven by cash growth, while equity rose to **$2.87 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Sept. 30, 2024 | Dec. 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $1,215,740 | $1,050,318 | | **Total assets** | **$7,198,602** | **$7,000,057** | | **Total current liabilities** | $466,710 | $423,372 | | **Total liabilities** | **$4,307,298** | **$4,276,373** | | **Total equity** | **$2,871,368** | **$2,704,872** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2024 revenues grew **13.1%** to **$806.8 million** due to political advertising, with net income rising **53.1%** to **$147.4 million** Q3 & Nine Months 2024 vs 2023 Income Statement Highlights (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $806,827 | $713,243 | $2,231,442 | $2,185,076 | | **Operating Income** | $229,892 | $134,657 | $509,312 | $589,811 | | **Net Income Attributable to TEGNA** | $147,448 | $96,183 | $419,152 | $400,591 | | **Diluted EPS** | $0.89 | $0.48 | $2.44 | $1.86 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$435.2 million** for the nine months ended September 30, 2024, with investing activities providing **$49.1 million** Nine Months Ended Sept. 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash flow from operating activities** | $435,216 | $408,839 | | **Net cash flow provided by (used for) investing activities** | $49,107 | $(3,095) | | **Net cash flow used for financing activities** | $(309,106) | $(404,395) | | **Increase in cash and cash equivalents** | $175,217 | $1,349 | | **Cash and cash equivalents at end of period** | $536,253 | $553,030 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue sources, the **$56.0 million** Octillion Media acquisition, debt levels, share repurchases, and ongoing legal proceedings - On January 31, 2024, the company's subsidiary Premion, LLC acquired substantially all assets of Octillion Media for a base purchase price of **$56.0 million**, plus a potential earnout of up to **$14.0 million**. This resulted in the preliminary recording of **$34.4 million** in intangible assets and **$34.4 million** in goodwill[28](index=28&type=chunk)[29](index=29&type=chunk) - In the first quarter of 2024, the company received **$152.9 million** in pre-tax cash proceeds from the sale of its investment in Broadcast Music, Inc. (BMI), recognizing a gain of the same amount[32](index=32&type=chunk) - The company has an ongoing commercial agreement with MadHive, Inc., a related party. Expenses incurred under this agreement were **$16.4 million** for Q3 2024 and **$53.7 million** for the first nine months of 2024[48](index=48&type=chunk) Revenue by Source (in thousands) | Revenue Source | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Subscription | $356,205 | $377,891 | $1,098,554 | $1,188,297 | | Advertising & Marketing Services | $312,963 | $312,413 | $912,632 | $937,984 | | Political | $126,318 | $11,643 | $185,789 | $22,925 | | Other | $11,341 | $11,296 | $34,467 | $35,870 | | **Total revenues** | **$806,827** | **$713,243** | **$2,231,442** | **$2,185,076** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 revenue growth driven by political advertising, the impact of a prior-year merger fee on nine-month operating income, and strong liquidity with **$286.4 million** returned to shareholders [Consolidated Results from Operations](index=19&type=section&id=Consolidated%20Results%20from%20Operations) Q3 2024 revenues increased **13%** due to political advertising, offsetting subscription declines, while nine-month operating income decreased **14%** due to a prior-year merger fee Year-over-Year Revenue Change by Category (in thousands) | Revenue Category | Q3 2024 | Q3 2023 | Change | 9 Months 2024 | 9 Months 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Subscription | $356,205 | $377,891 | (6%) | $1,098,554 | $1,188,297 | (8%) | | Advertising & Marketing Services | $312,963 | $312,413 | 0% | $912,632 | $937,984 | (3%) | | Political | $126,318 | $11,643 | *** | $185,789 | $22,925 | *** | - The decrease in nine-month operating income was primarily driven by the absence of the **$136.0 million** Merger termination fee received in 2023, a decrease in subscription revenue of **$89.7 million**, and a decline in AMS revenue of **$25.4 million**, which were partially offset by an increase in political revenue of **$162.9 million**[62](index=62&type=chunk) [Non-GAAP Information](index=24&type=section&id=Non-GAAP%20Information) Adjusted EBITDA, a non-GAAP measure, increased **62%** to **$269.5 million** in Q3 2024 and **10%** to **$619.4 million** for the nine months, driven by political revenue Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net income attributable to TEGNA Inc. (GAAP)** | $147,448 | $96,183 | $419,152 | $400,591 | | **Adjustments (Taxes, Interest, D&A, Special Items, etc.)** | $122,055 | $69,738 | $200,265 | $164,605 | | **Adjusted EBITDA (Non-GAAP)** | **$269,503** | **$165,921** | **$619,417** | **$565,196** | - Special items affecting 2024 results include retention costs, workforce restructuring expenses, M&A-related costs, a contract termination fee, and a gain on the sale of the BMI investment[68](index=68&type=chunk) [Liquidity, Capital Resources and Cash Flows](index=26&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Cash%20Flows) TEGNA maintains strong liquidity with **$536.3 million** cash and **$737.9 million** unused credit, returning **$286.4 million** to shareholders in the first nine months - The company's capital allocation framework aims to return **40-60%** of Adjusted free cash flow from 2024-2025 to shareholders. In the first nine months of 2024, approximately **65%** of Adjusted free cash flow was returned[80](index=80&type=chunk) - In January 2024, the company amended its revolving credit facility, reducing the commitment from **$1.51 billion** to **$750 million** and extending the term to January 2029[33](index=33&type=chunk)[80](index=80&type=chunk) - Share repurchases in the first nine months of 2024 totaled **$226.0 million** for **15.7 million** shares under a **$650.0 million** program authorized in December 2023[80](index=80&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risk exposures have not materially changed since December 31, 2023, with no floating interest rate obligations outstanding as of September 30, 2024 - There have been no material changes in market risk exposures since December 31, 2023[86](index=86&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that disclosure controls and procedures are effective as of September 30, 2024[87](index=87&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including ongoing antitrust litigation, is detailed in Note 10 to the condensed consolidated financial statements - Information regarding legal proceedings is detailed in Note 10 to the condensed consolidated financial statements[88](index=88&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in the 2023 Annual Report on Form 10-K[89](index=89&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) TEGNA repurchased **4.8 million** shares for **$70.1 million** in Q3 2024, with **$424.0 million** remaining under the current share repurchase program Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2024 | 1,546,000 | $15.05 | | August 2024 | 1,797,000 | $14.03 | | September 2024 | 1,491,000 | $14.53 | | **Total Q3 2024** | **4,834,000** | **N/A** | - As of the end of Q3 2024, **$424.0 million** remained available for purchase under the current share repurchase program, which expires on December 31, 2025[92](index=92&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, executive agreements, and required certifications

TEGNA Inc. (TGNA) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.25%. A quarter ago, it was expected that this company would post earnings of $0.49 per share when it actually produced earnings of $0.50, delivering a surprise of 2.04%.Over the last four quarters, the company has su ...

The upcoming report from TEGNA Inc. (TGNA) is expected to reveal quarterly earnings of $0.83 per share, indicating an increase of 112.8% compared to the year-ago period. Analysts forecast revenues of $792.44 million, representing an increase of 11.1% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a company's ea ...

Melissa Kopka Shares of TEGNA (NYSE:TGNA) have been a poor performer over the past year, despite significant shaare repurchases, as investors continue to be concerned about cord- outtines of the future of broadeast television. I last overed TEGNA in May, rating shares a "strong buy" given its free eash flow capacity, but since then, the stock is down 5% even as the market has risen by 5%. This underperformance has come even as the company should see a major financial benefit from outsized political spending ...

It has been about a month since the last earnings report for TEGNA Inc. (TGNA) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is TEGNA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. TEGNA Q2 Earnings Beat Estimates, Revenues Fall Y/ ...

DENVER, Aug. 20, 2024 /PRNewswire/ -- ALLCITY Network, the operator of multi-platform local sports networks, has raised its Series B funding. The round is led by public broadcast company, TEGNA (NYSE: TGNA). Existing investors Mosaic General Partnership and Bullpen Capital also participated in the round. The TEGNA investment brings ALLCITY Network's total funding beyond $25M and further accelerates the company's position within the digital sports industry. In addition to the investment, ALLCITY and TEGNA ha ...

TEGNA's (TGNA) 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 ...

Financial Data and Key Metrics Changes - Total company revenue for Q2 2024 decreased by 3% year-over-year, primarily due to lower subscription and advertising marketing services revenues, partially offset by higher political advertising [17][5] - Subscription revenue fell by 7% year-over-year, attributed to subscriber declines, although partially offset by contractual rate increases [17][18] - Adjusted EBITDA was $176 million, and adjusted free cash flow was $131 million during Q2 [22] Business Line Data and Key Metrics Changes - Advertising and marketing services (AMS) revenue decreased by 5% year-over-year due to a decline in national advertising demand, while local advertising remained resilient [18] - Premion local revenue experienced low double-digit growth year-over-year, while national Premion revenue remained challenging, resulting in flat non-political Premion revenue year-over-year [19][18] Market Data and Key Metrics Changes - Local advertising showed strength in categories such as services, entertainment, banking and finance, and restaurants, while automotive, home improvement, retail, healthcare, and media telecom were weaker [18] - The company expects strong bookings from political ad spending and the summer Olympics to positively impact Q3 revenue, forecasting a 9% to 12% year-over-year increase [23] Company Strategy and Development Direction - The company is focused on capitalizing on the growth of CTV advertising through Premion, with expectations for revenue growth to increase in the coming years [19][6] - A cost reduction initiative aims to generate $90 million to $100 million in annualized savings by the end of 2025, targeting reductions in operating expenses outside of high-growth areas [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted a sluggish and uncertain economic environment affecting national ad spend, but local advertising is performing better due to increased spending from small and medium local businesses [5][6] - The upcoming election cycle is expected to drive record political ad spending, with the company well-positioned to capture a share of linear and OTT political ad dollars [8][9] Other Important Information - The company has returned approximately $196 million of capital to shareholders in the first half of 2024 through share repurchases and dividends, achieving 56% of its $350 million commitment for the year [16] - The company ended Q2 with total debt of $3.1 billion and cash of $446 million, maintaining a net leverage of 2.9x [22][23] Q&A Session Summary Question: How should we think about the potential upside from political advertising? - Management indicated that new enthusiasm and fundraising on the Democratic side could positively impact political ad spending, but emphasized the need to consider the starting point for comparisons [26][27] Question: What are the trends in local advertising? - Local advertising remains resilient, with a noted decline in national advertising, particularly in the automotive sector, which has shown improvement in Q3 [37][38] Question: Can you provide insights on retransmission revenue? - Management confirmed that net retransmission revenue is stable, with a mix of traditional and digital subscribers impacting overall revenue [40][43] Question: What is the outlook for the U.S. economy? - Management expressed a mixed outlook, noting concerns but also potential for a soft landing, with advertisers remaining cautious [57][59] Question: What are the key areas for future growth? - Future growth is expected to come from strategic use of local content, programming, and potential regulatory relief, with a focus on leveraging the company's strong local brands [52][53]