Discovery Communications (Nasdaq: DISCA ) reported earnings on Feb. 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Discovery Communications met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Discovery Communications chalked up revenue of $1.20 billion. The 23 analysts polled by S&P Capital IQ expected a top line of $1.20 billion on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $1.12 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 $0.61. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.61 for Q4 were 29% lower than the prior-year quarter's $0.86 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 72.7%, 40 basis points better than the prior-year quarter. Operating margin was 40.3%, 100 basis points worse than the prior-year quarter. Net margin was 18.7%, 1,120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $5.18 billion. The average EPS estimate is $3.39.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 254 members out of 284 rating the stock outperform, and 30 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Discovery Communications a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Discovery Communications is hold, with an average price target of $60.61.
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