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DIRECTV Second Quarter Earnings
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DIRECTV (Nasdaq:DTV) announced its results for the most recent quarter on August 2, 2012. DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: DIRECTV's revenues topped expectations, though the company's EPS fell short of predictions. The company reported $1.09 per share versus the $1.15 per share estimate and revenues of $7.22 billion versus the $7.04 billion estimate. EPS rose 19.8% while revenue climbed 9.5% from the same period last year. DIRECTV's revenue has grown during each of the past four quarters on a year-over-year basis. Net income for the second quarter was $711 million. According to the reported number, this is up 1.4% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "DIRECTV's strong second quarter consolidated results reflect the unique benefits from our diversified portfolio of businesses which are driving industry leading top-line and bottom-line results," said Mike White, president and CEO of DIRECTV. "DIRECTV Latin America's results demonstrate our competitive advantages in a rapidly growing market by achieving an all-time record of 645,000 net additions and 20% revenue growth in the quarter even with currency headwinds. In addition, DIRECTV U.S. delivered the highest operating profit before depreciation and amortization growth in two years accelerating to 10%, an early indication of successfully executing on our long term strategy of striking a more optimal balance between growth and profitability."
A Look Back: Net income has increased 12.6% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 29.1% from the year-earlier quarter.
Looking Ahead: Analysts have a more positive outlook about the company's results for next quarter. The average estimate for third quarter is 99 cents per share, an increase from 97 cents 60 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $4.38 a share to $4.35 over the last 30 days.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: DIRECTV's revenues topped expectations, though the company's EPS fell short of predictions. The company reported $1.09 per share versus the $1.15 per share estimate and revenues of $7.22 billion versus the $7.04 billion estimate. EPS rose 19.8% while revenue climbed 9.5% from the same period last year. DIRECTV's revenue has grown during each of the past four quarters on a year-over-year basis. Net income for the second quarter was $711 million. According to the reported number, this is up 1.4% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "DIRECTV's strong second quarter consolidated results reflect the unique benefits from our diversified portfolio of businesses which are driving industry leading top-line and bottom-line results," said Mike White, president and CEO of DIRECTV. "DIRECTV Latin America's results demonstrate our competitive advantages in a rapidly growing market by achieving an all-time record of 645,000 net additions and 20% revenue growth in the quarter even with currency headwinds. In addition, DIRECTV U.S. delivered the highest operating profit before depreciation and amortization growth in two years accelerating to 10%, an early indication of successfully executing on our long term strategy of striking a more optimal balance between growth and profitability."
A Look Back: Net income has increased 12.6% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 29.1% from the year-earlier quarter.
Looking Ahead: Analysts have a more positive outlook about the company's results for next quarter. The average estimate for third quarter is 99 cents per share, an increase from 97 cents 60 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $4.38 a share to $4.35 over the last 30 days.
by
Investopedia Staff
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