Discovery Communications Earnings: After Four Straight Increases, Revenue Drops as Net Income Falls

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S&P 500 (NYSE:SPY) component Discovery Communications Inc. (NASDAQ:DISCA) reported its results for the third quarter. Discovery Communications is a global media and entertainment company that offers programming across multiple distribution platforms in more than 170 other countries.

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Discovery Communications Inc. Earnings Cheat Sheet

Results: Net income for Discovery Communications Inc. fell to $206 million (57 cents per share) vs. $237 million (60 cents per share) a year earlier. This is a decline of 13.1% from the year-earlier quarter.

Revenue: Fell 0.4% to $1.08 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Discovery Communications Inc. fell short of the mean analyst estimate of 63 cents per share. Analysts were expecting revenue of $1.06 billion.

Quoting Management: David Zaslav, Discovery’s President and Chief Executive Officer said, “Discovery delivered another quarter of strong operating results as a sustained focus on developing compelling content and leveraging it globally provided additional growth opportunities and continued financial momentum. In the U.S. we expanded market share, built new hits and capitalized on the ongoing strength of the ad market, while, internationally, we further leveraged the universal appeal of our programming and increased penetration of global pay-tv platforms to expand our unparalleled distribution footprint.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 76 cents versus a mean estimate of net income of 70 cents per share.

Net income has increased 15.6% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 75.9% from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 82 cents per share from 81 cents. For the fiscal year, the average estimate has moved up from $2.78 a share to $2.79 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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