The 10-second takeaway
For the quarter ended June 30 (Q2), Discovery Communications met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, net margins increased.
Discovery Communications booked revenue of $1.14 billion. The 22 analysts polled by S&P Capital IQ hoped for a top line of $1.16 billion on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $1.07 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 $0.77. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.70 per share. GAAP EPS of $0.76 for Q2 were 23% higher than the prior-year quarter's $0.62 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 72.5%, 50 basis points worse than the prior-year quarter. Operating margin was 42.8%, 70 basis points better than the prior-year quarter. Net margin was 25.7%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $4.59 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 hold, with an average price target of $53.87.
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