TEGNA Inc. (NYSE:TGNA) is a leading broadcast TV company. TEGNA owns 64 television stations and is the largest independent television station group of major network affiliates in the top 25 markets.
TEGNA has been riding high, following the completion of two strategic business moves. The company plans to utilize gross proceeds of $250 million from the sale of its web portal CareerBuilder, to clear off existing debt. The spin-off of its auto-sales website, Cars.com into two publicly traded companies — TEGNA and Cars.com — is anticipated to increase the company’s prospects and appropriate market valuations. Moreover, TEGNA’s media business is faring well, evident from its revenue growth.
However, 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 improvements in content creation, aggregation and distribution platforms. Such upgrades add to the company’s programming costs and expenses, which are likely to affect the bottom line.
Zacks Rank: TEGNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. The company has generated a positive average earnings surprise of 7.90% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: TEGNA’s Q3 2017 adjusted earnings surpassed our estimate. The company reported adjusted earnings per share of 23 cents, which was a penny higher the Zacks Consensus Estimate. Investors should note that these figures take out stock option expenses.
Revenue: TEGNA reported total revenue of $464.3 million, down 10.7% year-over-year while surpassing the Zacks Consensus Estimate of $460.9 million.
Key States to Note: In the reported quarter, revenues from B2B Marketing services grew 49% year over year and OTT advertising revenues grew 92% sequentially.
Check back later for our full write up on this TEGNA earnings report later!
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TEGNA Inc. (TGNA): Free Stock Analysis Report
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