The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DIRECTV beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
DIRECTV reported revenue of $7.42 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $7.31 billion on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $6.84 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 $0.90. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.94 per share. GAAP EPS of $0.90 for Q3 were 29% higher than the prior-year quarter's $0.70 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 46.6%, 190 basis points worse than the prior-year quarter. Operating margin was 14.4%, 70 basis points worse than the prior-year quarter. Net margin was 7.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.94 billion. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $29.43 billion. The average EPS estimate is $4.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 723 members out of 799 rating the stock outperform, and 76 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give DIRECTV a green thumbs-up, and 14 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 $56.27.
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