CORRECTED-Tegna Q4 revenue falls on drop in political advertising

Reuters03-02
CORRECTED-Tegna Q4 revenue falls on drop in political advertising

Corrects Key Details table to say Q4 revenue was $706.1 mln from $358 mln; corrects throughout to say revenue beat estimates

Overview

  • U.S. media company's Q4 revenue fell 19% yr/yr, but beat analyst expectations

  • Adjusted EBITDA for Q4 beat analyst expectations, aided by cost-cutting

  • Company on track for Nexstar acquisition by H2 2026, pending approvals

Outlook

  • Tegna will not provide forward-looking guidance due to pending Nexstar acquisition

  • Tegna expects Nexstar acquisition to close by second half of 2026

  • Tegna suspends share repurchases but will continue paying regular dividends

Result Drivers

  • POLITICAL ADVERTISING DECLINE - Revenue fell 19% in Q4 due to a drop in political advertising, typical in non-election years

  • AMS REVENUE GROWTH - AMS revenue grew 4% driven by growth in linear and local digital advertising, despite TV advertising challenges

  • COST-CUTTING INITIATIVES - Operating expenses decreased due to cost-cutting measures, primarily in compensation and outside services

Company press release: ID:nGNX2g6jkK

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$706.1 mln

$700.75 mln (5 Analysts)

Q4 Net Income

$56 mln

Q4 Adjusted EBITDA

Beat

$161 mln

$155.97 mln (5 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the broadcasting peer group is "buy."

  • Wall Street's median 12-month price target for Tegna Inc is $22.00, about 5% above its February 27 closing price of $20.95

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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