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DIRECTV Third Quarter Earnings
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DIRECTV (Nasdaq:DTV) announced its results for the most recent quarter on November 6, 2012. DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: DIRECTV's revenues topped expectations, though the company's EPS fell short of predictions. The company reported 90 cents per share versus the 92 cents per share estimate and revenues of $7.42 billion versus the $7.04 billion estimate. EPS rose 28.6% while revenue climbed 8.4% from the same period last year. DIRECTV's revenue has grown during each of the past four quarters on a year-over-year basis. DIRECTV's net income for the third quarter was $565 million. According to the reported number, this is up 9.5% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "DIRECTV delivered another strong quarter highlighted by solid revenue, earnings and cash flow growth," said Mike White, president and CEO of DIRECTV. "We continue to extend our position as the world's largest pay TV service with industry leading growth by leveraging the strength of our premier brands and distinctive products and services throughout the Americas."
A Look Back: Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.9 percentage points to 46.6% from the year-earlier quarter. Over that time, margins have contracted on average 1.5 percentage points per quarter on a year-over-year basis.
Net income has increased 8.7% 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 16.2% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $1.16 a share to $1.13 over the last 60 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. At $4.24 per share, the average estimate for the fiscal year has risen over the past seven days from $4.23.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: DIRECTV's revenues topped expectations, though the company's EPS fell short of predictions. The company reported 90 cents per share versus the 92 cents per share estimate and revenues of $7.42 billion versus the $7.04 billion estimate. EPS rose 28.6% while revenue climbed 8.4% from the same period last year. DIRECTV's revenue has grown during each of the past four quarters on a year-over-year basis. DIRECTV's net income for the third quarter was $565 million. According to the reported number, this is up 9.5% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "DIRECTV delivered another strong quarter highlighted by solid revenue, earnings and cash flow growth," said Mike White, president and CEO of DIRECTV. "We continue to extend our position as the world's largest pay TV service with industry leading growth by leveraging the strength of our premier brands and distinctive products and services throughout the Americas."
A Look Back: Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.9 percentage points to 46.6% from the year-earlier quarter. Over that time, margins have contracted on average 1.5 percentage points per quarter on a year-over-year basis.
Net income has increased 8.7% 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 16.2% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $1.16 a share to $1.13 over the last 60 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. At $4.24 per share, the average estimate for the fiscal year has risen over the past seven days from $4.23.
by
Investopedia Staff
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