DIRECTV Crushes Earnings Estimates

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 14, 2013 at 12:00AM
Other

DIRECTV (Nasdaq: DTV) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DIRECTV met expectations on revenues and crushed 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 shrank, net margins grew.

Revenue details
DIRECTV reported revenue of $8.05 billion. The 19 analysts polled by S&P Capital IQ wanted to see sales of $8.03 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $7.46 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.41. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.13 per share. GAAP EPS of $1.55 for Q4 were 53% higher than the prior-year quarter's $1.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.0%, 90 basis points worse than the prior-year quarter. Operating margin was 16.1%, 10 basis points worse than the prior-year quarter. Net margin was 11.7%, 210 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.63 billion. On the bottom line, the average EPS estimate is $1.26.

Next year's average estimate for revenue is $32.07 billion. The average EPS estimate is $5.10.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 732 members out of 809 rating the stock outperform, and 77 members rating it underperform. Among 221 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give DIRECTV a green thumbs-up, and 13 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 $57.47.

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