The Top 5 Analyst Questions From TEGNA’s Q1 Earnings Call

TEGNA’s first quarter was defined by declining year-over-year revenue, largely attributed to the cyclical drop in political advertising and softer advertising demand linked to macroeconomic headwinds. Despite these challenges, management highlighted growth in digital advertising and benefits from new local sports rights deals. CEO Michael Steib pointed to operational improvements and cost-cutting efforts as helping to offset revenue pressures, stating, “We are deploying technology, automation and AI to run a more efficient and effective operation.” The market’s positive response to the results reflected confidence in these ongoing initiatives and the company’s ability to manage expenses.

Is now the time to buy TGNA? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions TEGNA’s Q1 Earnings Call

• Steven Cahall (Wells Fargo) pressed on how imminent regulatory changes might impact TEGNA’s M&A strategy; CEO Michael Steib emphasized maintaining capital flexibility until the landscape is clearer and reiterated the company’s commitment to shareholder value.
• Steven Cahall (Wells Fargo) also asked about the drivers of anticipated Q2 advertising weakness; CFO Julie Heskett explained that while advertising is softer, there are no major cancellations—rather, advertisers are taking a wait-and-see approach due to lower consumer confidence.
• Daniel Kurnos (Benchmark Company) inquired about appetite for scaling up through acquisitions; Steib responded that the company would consider buying or selling assets based on accretion to shareholder value but needs more regulatory clarity.
• Craig Huber (Huber Research Partners) questioned the timeline and revenue potential for alternative spectrum uses; Steib said the opportunity is promising but remains a longer-term option, with no meaningful near-term revenue impact expected.
• Avi Steiner (JPMorgan) asked about leverage capacity for M&A and potential cost synergies; Steib highlighted that consolidation mainly unlocks back-office savings and that any deal would be expected to quickly become financially beneficial.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the trajectory of core advertising demand and any stabilization in macroeconomic sentiment, (2) the pace of digital product adoption and CTV advertising revenue expansion, and (3) developments in FCC deregulation and TEGNA’s response to potential M&A opportunities. Execution on cost reduction and successful subscriber renewals will also be key for ongoing performance.

TEGNA currently trades at $17.11, up from $16.67 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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