The 10-second takeaway
For the quarter ended March 31 (Q1), Discovery Communications met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins were steady.
Discovery Communications reported revenue of $1.16 billion. The 22 analysts polled by S&P Capital IQ looked for revenue of $1.16 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.63. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. GAAP EPS of $0.63 for Q1 were 11% higher than the prior-year quarter's $0.57 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 70.4%, 140 basis points worse than the prior-year quarter. Operating margin was 35.9%, 460 basis points worse than the prior-year quarter. Net margin was 20.0%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $5.49 billion. The average EPS estimate is $3.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 260 members out of 292 rating the stock outperform, and 32 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Discovery Communications a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Discovery Communications is hold, with an average price target of $71.25.
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