NEW YORK - TEGNA Inc. (NYSE:TGNA) reported a fourth-quarter earnings shortfall, with adjusted earnings per share (EPS) of $0.43, which was $0.05 below the analyst consensus of $0.48.
Revenue for the quarter also fell short of expectations, coming in at $725.85 million against the projected $752.78 million.
TEGNA shares saw a modest increase of +0.81%.
The company's revenue for the quarter was not only below analyst estimates but also marked a decline from the same quarter last year. TEGNA's free cash flow guidance for the 2024-2025 period is set to be in the range of $900 million to $1.1 billion, reflecting the anticipated benefits of affiliation renewal agreements with NBC and ABC and retransmission consent agreements repricing 30 percent of traditional subscribers.
Management's current expectations also include the impact of ongoing transformation initiatives aimed at streamlining operations and achieving cost reductions, with initial benefits expected in the second half of 2024.
TEGNA's management has expressed confidence in the company's strategic plans, which are designed to capitalize on innovation-driven opportunities and operational efficiencies. "Our transformation initiatives are progressing as planned, and we are on track to realize the benefits in the latter part of 2024, which we believe will significantly contribute to our free cash flow generation," stated a TEGNA executive. The company plans to provide further updates on these initiatives in the coming quarters.
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