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Directv Third Quarter Earnings Preview

November 01, 2012 | Filed Under »
Tickers in this Article » DTV
DirecTV (Nasdaq:DTV) is expected to report increased earnings when it releases its third quarter results on Tuesday, November 6, 2012. The consensus estimate is anticipating a profit of 92 cents a share, an increase from last year's 70 cents per share.



Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings

What to Expect: DirecTV is expected to report 92 cents per share, up 31.4% from a year ago when the company reported earnings of 70 cents per share.

The consensus estimate hasn't changed in the last month, but it has dropped from 96 cents three months ago. For the fiscal year, analysts are expecting earnings of $4.23 per share.

DirecTV is expected to report revenue of $7.41 billion for the quarter, beating last year's figure of $6.84 billion by 8.3%. Revenue of $29.73 billion is expected for the fiscal year.



Company Performance: DirecTV has reported revenue increases for the past four quarters. It increased 9.5% to $7.22 billion in the second quarter. Prior to that, the figure rose 11.5% in the first quarter, 12.7% in the fourth quarter of the last fiscal year and 13.6% in the third quarter of the last fiscal year.

DTV's P/E ratio of 13.3 falls below the industry average of 18.56. A low P/E ratio may indicate that the market expects relatively slower earnings growth. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Profit With The Power Of Price-To-Earnings



The stock price has risen from $50.16 on August 3, 2012 to $51.14 over the past quarter. Currently, DirecTV's stock is on a downward trend. The share price has fallen 18 cents since October 25, 2012.





The Competition: DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America. Thirteen of 21 analysts give DirecTV a buy rating. This rating has been unchanged for the past three months.

The company's closest competitor in the broadcasting and cable tv industry is Comcast (CMCSA). Analysts are less optimistic about DirecTV than about Comcast. Eighteen out of 23 analysts rate the latter a buy.



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