The 10-second takeaway
For the quarter ended March 31 (Q1), Discovery Communications beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Gross margin increased, operating margin increased, and net margin shrank.
Discovery Communications tallied revenue of $1.10 billion. The 22 analysts polled by S&P Capital IQ expected revenue of $1.05 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $951.0 million.
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 $0.57. The 24 earnings estimates compiled by S&P Capital IQ anticipated $0.60 per share. GAAP EPS of $0.57 for Q1 were 23% lower than the prior-year quarter's $0.74 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 71.8%, 50 basis points better than the prior-year quarter. Operating margin was 40.5%, 60 basis points better than the prior-year quarter. Net margin was 20.0%, 1,210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $4.54 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 $49.17.
- 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.