Discovery Communications Beats Up on Analysts Yet Again

Discovery Communications (Nasdaq: DISCA  ) filed its 10-K on Feb. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Discovery Communications beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Discovery Communications notched revenue of $1.12 billion. The 21 analysts polled by S&P Capital IQ expected a top line of $1.11 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.02 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.91. The 25 earnings estimates compiled by S&P Capital IQ averaged $0.69 per share on the same basis. GAAP EPS of $0.86 for Q4 were 91% higher than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 72.3%, 10 basis points better than the prior-year quarter. Operating margin was 41.3%, 90 basis points better than the prior-year quarter. Net margin was 29.9%, 1,110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $4.50 billion. The average EPS estimate is $2.77.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Discovery Communications is outperform, with an average price target of $46.59.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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