TGNA - Embedded Expectations Analysis - 2021 06 30
TEGNA Inc. (TGNA:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 10.6x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is excited about the Supreme Court media ownership ruling and confident about Premion's performance and the firm's cost managementSpecifically, management generated an excitement marker when saying the Supreme Court's ruling on media ownership regulations is great news for the industry in the medium- to long-term. In addition, they are confident they have a clear view of the strength of political advertising trends well into the future and that they have been managing costs thoughtfully through operational leverage. Furthermore, management is confident Premion is performing nicely in the national advertising market, that encoder technology continues to improve, and that Automotive OEMs are advertising because they believe they will be in a good position when inventory catches up with supply
TEGNA is a media company. The company's business provides television programming and digital content. Each television station also has a digital presence across online, mobile and social platforms. The company provides advertising and marketing services, which include local and national non-political television advertising, digital marketing services, and advertising on stations' websites and tablet and mobile products; subscription by satellite, cable, Over the Top and telecommunications providers; political advertising; and other services, such as production of programming and advertising material. The company's portfolio of Big 4 NBC, CBS, ABC and FOX stations operate under long-term affiliation agreements.
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