The 10-second takeaway
For the quarter ended March 31 (Q1), DIRECTV met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Gross margins shrank, operating margins grew, net margins dropped.
DIRECTV booked revenue of $7.58 billion. The 21 analysts polled by S&P Capital IQ hoped for revenue of $7.53 billion on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $7.05 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 $1.43. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. Non-GAAP EPS of $1.43 for Q1 were 34% higher than the prior-year quarter's $1.07 per share. GAAP EPS of $1.20 for Q1 were 12% higher than the prior-year quarter's $1.07 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 49.3%, 10 basis points worse than the prior-year quarter. Operating margin was 18.6%, 10 basis points better than the prior-year quarter. Net margin was 9.1%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.76 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $31.89 billion. The average EPS estimate is $4.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 780 members out of 856 rating the stock outperform, and 76 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 233 give DIRECTV a green thumbs-up, and 11 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 $57.40.
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