TEGNA (TGNA) Tops Q4 Earnings Estimates, Issues 1Q18 View

TEGNA TGNA reported impressive financial results in the fourth quarter of 2017, wherein both the top line and the bottom line outpaced the Zacks Consensus Estimate.

Currently, TEGNA is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.

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.

TEGNA Inc. Price, Consensus and EPS Surprise

 

TEGNA Inc. Price, Consensus and EPS Surprise | TEGNA Inc. Quote

 

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 non-GAAP 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.

Recent Releases

Investors interested in the Zacks Consumer Discretionary sector are keenly awaiting fourth-quarter 2017 earnings reports from key players like AMC Entertainment AMC, AMC Networks AMCX and Cable One CABO. All the three companies are scheduled to release results on Mar 1.

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