We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Discovery reported fourth-quarter 2020 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate by 4.1% but decreasing 22.4% year over year.
Revenues inched up 0.4% year over year to $2.89 billion and beat the consensus mark by 2.1%.
Top-Line Details
Advertising revenues climbed 0.3% year over year to $1.60 billion. Moreover, Distribution revenues inched up 1.2% year over year to $1.22 billion. Other revenues were $65 million, down 11% from the year-ago quarter.
U.S. Networks (61.6% of revenues) revenues increased 1.5% on a year-over-year basis to $1.78 billion. Advertising revenues declined 0.3% while distribution revenues grew 5.3%.
Subscribers of Discovery’s fully distributed networks were 3% lower on a year-over-year basis. Total portfolio subscribers declined 5% year over year.
International Networks revenues (38.3% of revenues) slipped 1.3% year over year to $1.11 billion. Advertising revenues were up 1.5%, while distribution revenues were down 4%.
Notably, total share of viewing across the international portfolio in the fourth quarter increased 4% on average, with strong share growth in the United Kingdom, Spain and Portugal.
Operating Details
In the fourth quarter, selling, general and administrative (SG&A) expenses increased 2% from the year-ago quarter to $809 million. This year-over-year growth was due to 8% increase in International Network’s SG&A.
Adjusted operating income before depreciation & amortization (“OIBDA”) decreased 9.3% from the year-ago quarter to $1 billion. Excluding the foreign-exchange impact, OIBDA decreased 8%.
U.S. Networks adjusted OIBDA increased 2.3% from the year-ago quarter to $946 million.
However, International Networks’ adjusted OIBDA declined 37.8% from the year-ago quarter to $196 million. Excluding the forex impact, adjusted OIBDA was down 35%.
GAAP operating income declined 30.8% year over year to $488 million.
Balance Sheet
As of Dec 31, 2020, cash & cash equivalents were $2.09 billion compared with $1.89 billion as of Sep 30, 2020.
Discovery repurchased shares worth $213 million in the reported quarter. Currently, $1.4 billion of the $2-billion authorization remains as of Dec 31, 2020.
Zacks Rank & Stocks to Consider
Currently, Discovery carries a Zacks Rank #3 (Hold).
Crocs and TEGNA are set to report their quarterly results on Feb 23 and Mar 1, respectively. BJs Wholsale is scheduled to report the same on Mar 4.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favoritestock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Discovery's (DISCA) Q4 Earnings & Revenues Beat Estimates
Discovery reported fourth-quarter 2020 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate by 4.1% but decreasing 22.4% year over year.
Revenues inched up 0.4% year over year to $2.89 billion and beat the consensus mark by 2.1%.
Top-Line Details
Advertising revenues climbed 0.3% year over year to $1.60 billion. Moreover, Distribution revenues inched up 1.2% year over year to $1.22 billion. Other revenues were $65 million, down 11% from the year-ago quarter.
U.S. Networks (61.6% of revenues) revenues increased 1.5% on a year-over-year basis to $1.78 billion. Advertising revenues declined 0.3% while distribution revenues grew 5.3%.
Discovery, Inc. Price, Consensus and EPS Surprise
Discovery, Inc. price-consensus-eps-surprise-chart | Discovery, Inc. Quote
Subscribers of Discovery’s fully distributed networks were 3% lower on a year-over-year basis. Total portfolio subscribers declined 5% year over year.
International Networks revenues (38.3% of revenues) slipped 1.3% year over year to $1.11 billion. Advertising revenues were up 1.5%, while distribution revenues were down 4%.
Notably, total share of viewing across the international portfolio in the fourth quarter increased 4% on average, with strong share growth in the United Kingdom, Spain and Portugal.
Operating Details
In the fourth quarter, selling, general and administrative (SG&A) expenses increased 2% from the year-ago quarter to $809 million. This year-over-year growth was due to 8% increase in International Network’s SG&A.
Adjusted operating income before depreciation & amortization (“OIBDA”) decreased 9.3% from the year-ago quarter to $1 billion. Excluding the foreign-exchange impact, OIBDA decreased 8%.
U.S. Networks adjusted OIBDA increased 2.3% from the year-ago quarter to $946 million.
However, International Networks’ adjusted OIBDA declined 37.8% from the year-ago quarter to $196 million. Excluding the forex impact, adjusted OIBDA was down 35%.
GAAP operating income declined 30.8% year over year to $488 million.
Balance Sheet
As of Dec 31, 2020, cash & cash equivalents were $2.09 billion compared with $1.89 billion as of Sep 30, 2020.
Discovery repurchased shares worth $213 million in the reported quarter. Currently, $1.4 billion of the $2-billion authorization remains as of Dec 31, 2020.
Zacks Rank & Stocks to Consider
Currently, Discovery carries a Zacks Rank #3 (Hold).
Crocs (CROX - Free Report) , TEGNA (TGNA - Free Report) and BJs Wholesale Club (BJ - Free Report) are some top-ranked stocks in the broader consumer & discretionary sector. While both TEGNA and Crocs sport a Zacks Rank #1 (Strong Buy), BJs Wholsale has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs and TEGNA are set to report their quarterly results on Feb 23 and Mar 1, respectively. BJs Wholsale is scheduled to report the same on Mar 4.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favoritestock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>