DIRECTV
The 10-second takeaway
For the quarter ended March 31 (Q1), DIRECTV met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins increased, and net margins shrank.
Revenue details
DIRECTV tallied revenue of $7.05 billion. The 18 analysts polled by S&P Capital IQ expected to see revenue of $7.04 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $6.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.07. The 20 earnings estimates compiled by S&P Capital IQ anticipated $1.06 per share. GAAP EPS of $1.07 for Q1 were 26% higher than the prior-year quarter's $0.85 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 49.4%, 100 basis points worse than the prior-year quarter. Operating margin was 18.6%, 40 basis points better than the prior-year quarter. Net margin was 10.4%, 30 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $7.27 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $29.86 billion. The average EPS estimate is $4.36.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 702 members out of 772 rating the stock outperform, and 70 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give DIRECTV a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DIRECTV is outperform, with an average price target of $53.82.
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