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S&P 500 (NYSE:SPY) component Directv (NASDAQ:DTV) will unveil its latest earnings on Tuesday, November 6, 2012. DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America.
Directv Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 92 cents per share, a rise of 31.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 96 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 92 cents during the last month. For the year, analysts are projecting profit of $4.23 per share, a rise of 22.6% from last year.
Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at net income of $1.09 per share against a mean estimate of profit of $1.14. The company fell in line with expectations in the first quarter.
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Wall St. Revenue Expectations: On average, analysts predict $7.41 billion in revenue this quarter, a rise of 8.3% from the year-ago quarter. Analysts are forecasting total revenue of $29.73 billion for the year, a rise of 9.2% from last year’s revenue of $27.23 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.11 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Stock Price Performance: Between September 5, 2012 and October 31, 2012, the stock price had fallen $1.72 (-3.3%), from $52.86 to $51.14. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 2, 2012, when shares rose for eight straight days, increasing 5.3% (+$2.53) over that span. It saw one of its worst periods between October 4, 2012 and October 12, 2012 when shares fell for seven straight days, dropping 6.4% (-$3.40) over that span.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 16.2% in the fourth quarter of the last fiscal year and 8.5% in the first quarter before increasing again in the second quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.6% in the third quarter of the last fiscal year, 12.7% in the fourth quarter of the last fiscal year and 11.5% in the first quarter before increasing again in the second quarter.
Analyst Ratings: There are 13 out of 21 analysts surveyed (61.9%) rating Directv a buy.
A Look Back: In the second quarter, profit rose 1.4% to $711 million ($1.09 a share) from $701 million (91 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 9.5% to $7.22 billion from $6.6 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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