The 10-second takeaway
For the quarter ended June 30 (Q2), DIRECTV met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins improved, and net margins contracted.
DIRECTV chalked up revenue of $7.22 billion. The 17 analysts polled by S&P Capital IQ expected to see sales of $7.21 billion on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $6.60 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.09. The 23 earnings estimates compiled by S&P Capital IQ predicted $1.13 per share. GAAP EPS of $1.09 for Q2 were 20% higher than the prior-year quarter's $0.91 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.8%, 90 basis points worse than the prior-year quarter. Operating margin was 19.5%, 90 basis points better than the prior-year quarter. Net margin was 9.8%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.43 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $29.77 billion. The average EPS estimate is $4.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 718 members out of 794 rating the stock outperform, and 76 members rating it underperform. Among 200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give DIRECTV a green thumbs-up, and 15 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 $54.27.
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