TGNA – Market expectations are for Uniform ROA to erode, but management is excited about the Supreme Court ruling and confident about Premion and cost management

• 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 management
• Specifically, 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