NYSE$TGNA

TEGNA Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

TEGNA reported solid fourth quarter and full-year results, driving strong guidance for 2020.

TEGNA Inc. reported an eight percent increase in total company revenue for the fourth quarter, driven by acquisitions, subscription revenue growth, earlier than anticipated political advertising, and growth in advertising and marketing services revenue. Subscription revenue grew 31 percent year-over-year due to rate increases and acquisitions. The company expects a record year for political advertising in 2020, with revenue exceeding $300 million.

  • Total company revenue was $694 million, up eight percent year-over-year, exceeding the high end of the preliminary range announced on January 9, 2020.
  • Subscription revenue of $287 million increased 31 percent year-over-year due to increased subscribers from new stations acquired mid-third quarter, as well as negotiated rate increases.
  • GAAP earnings per diluted share were $0.38 and non-GAAP earnings per diluted share were $0.47.
  • Free cash flow was $111 million or 16 percent of fourth quarter revenue.

Headline financials

Total Revenue

$694M

Previous: $642M+8.1%
EPS (adj)

$0.47

Previous: $0.74-36.5%
Capital Expenditures

$37.1M

Previous: $29.9M+24.0%
Free Cash Flow

$111M

Previous: $165M-32.6%
Net Income

$84M

Previous: $161M-47.8%
Operating Income

$177M

Previous: $253M-30.2%
Gross Profit

$339M

Previous: $370M-8.5%
Cash & Equivalents

$29M

Previous: $136M-78.7%
Total Assets

$6.95B

Previous: $5.28B+31.8%
Stock-Based Comp

$6.26M

Previous: $239K+2518.8%

Revenue & EPS history

TEGNA · Revenue · Quarterly

$694M

Q4 2019+8.1%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

TEGNA · $407M total across 3 segments · Q4 2019

  • Advertising & Mktg Svcs
    $375M+35.4%
  • Political
    $24.4M-82.5%
  • Other
    $7.68M

Forward guidance

TEGNA provided guidance for the first quarter and full year of 2020, anticipating growth in subscription and political revenues. Political advertising revenue is expected to be weighted towards the back half of the year, particularly the fourth quarter.

Tailwinds

  • Total Company GAAP Revenue + low-to-mid thirties
  • Non-GAAP Revenue (excluding political) + mid-twenties
  • Subscription Revenue + mid-twenties percent
  • Political Revenue >$300 million
  • Leverage Ratio ~4.0x by year end (4.6x by mid-year)

Headwinds

  • Total Non-GAAP Operating Expenses + low-to-mid thirties
  • Non-GAAP Operating Expenses (excluding programming) + high twenties
  • Corporate Expenses $41 - 43 million
  • Depreciation $66 - 69 million
  • Interest Expense $220 - 225 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.7%

Avg return

30 days after

58%

42 / 72 earnings

Positive

+11.8%

Q2 2009

Best reaction

-20.3%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-0.5%-1.5%
Q3 2025+0.0%-0.2%-1.7%
Q2 2025-8.2%+24.2%+28.2%
Q1 2025+2.6%+6.4%-1.5%
Q4 2024+7.9%+4.0%+8.8%
Q3 2024+5.0%+3.0%+4.7%
Q2 2024-5.2%-7.2%-7.1%
Q1 2024+2.6%+5.9%-3.3%
Q4 2023+0.9%+3.6%+10.4%
Q3 2023-2.3%+1.4%-1.4%
Q2 2023+1.4%+1.2%-7.3%
Q1 2023+0.3%+1.4%+2.5%
Q4 2022-20.3%-22.0%-25.6%
Q3 2022+0.9%-1.6%+3.6%
Q2 2022-0.0%+1.9%+0.4%
Q1 2022-2.4%-3.9%-2.9%
Q4 2021+0.6%-1.3%-1.3%
Q3 2021+5.8%+5.9%+0.8%
Q2 2021+1.2%-1.5%-4.4%
Q1 2021-4.0%-2.1%-4.3%
Q4 2020-3.0%+3.7%+3.3%
Q3 2020+7.1%+8.0%+11.2%
Q2 2020+3.9%+3.4%+4.2%
Q1 2020+0.7%-3.3%+20.7%
Q4 2019-4.6%-2.4%-5.6%
Q3 2019+0.0%-1.3%+3.5%
Q2 2019-5.8%-6.8%+4.2%
Q1 2019+3.9%+2.2%+0.2%
Q4 2018+10.4%+12.0%+7.1%
Q3 2018-0.7%+2.5%+1.3%
Q2 2018-2.1%-3.8%+3.3%
Q1 2018-0.4%+0.8%+0.1%
Q4 2017+4.8%+0.9%-11.4%
Q3 2017+7.1%+4.7%+15.3%
Q2 2017-5.6%-9.8%-14.9%
Q1 2017-9.6%-12.1%-14.0%
Q4 2016+3.3%+4.5%+3.4%
Q3 2016-8.2%-6.7%+12.1%
Q2 2016-9.4%-12.4%-15.8%
Q1 2016-2.0%
Q4 2015+9.4%
Q3 2015-0.5%
Q2 2015-5.6%
Q1 2015+0.9%
Q4 2014+1.4%
Q3 2014+1.1%
Q2 2014-2.0%
Q1 2014+1.8%
Q4 2013+1.0%
Q3 2013-3.5%
Q2 2013+1.0%
Q1 2013-2.9%
Q4 2012+3.9%
Q3 2012+3.0%
Q2 2012-0.8%
Q1 2012+1.4%
Q4 2011+3.0%
Q3 2011+4.9%
Q2 2011-5.8%
Q4 2010+0.3%
Q1 2011+0.1%
Q3 2010+1.6%
Q2 2010+3.2%
Q4 2009-5.9%
Q1 2009-5.9%
Q1 2010+1.2%
Q4 2007+3.6%
Q3 2008+1.3%
Q3 2009+1.3%
Q2 2008+11.8%
Q2 2009+11.8%
Q4 2008+11.8%

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