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.
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.
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.
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.
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.
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.
- Add Discovery Communications to My Watchlist.
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.
More from The Motley Fool
This Billionaire Just Invested in a Beaten-Down Media Stock -- Should You?
Is traditional TV dying, or just changing?
Can Discovery Stock Keep Going After Last Week's 14% Pop?
The meandering cable and satellite television network operator moves higher after an analyst upgrade.
Why Discovery Communications, Inc. Stock Fell 11.3% in October
The media company's slide continued in October and now trades down roughly 35% on the year.