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DIRECTV (DTV) Misses Q1 Earnings and Revenues

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DIRECTV (DTV), one of the largest U.S. satellite TV operators, provides satellite-delivered digital television, video and broadband services.

The continuous adoption of high-end services, the introduction of the TV Everywhere service and company’s decision to launch 4K Ultra HD programming on subscribers’ TV sets should favor DIRECTV’s revenues in the first quarter.

Also, the company has already launched the DLA-1 satellite and is planning to roll out the DLA-2 satellite in the latter half of 2015, which we believe will improve its quality of service. We believe such tactical investments will not only help the company deliver superior video service but will also help it maintain its market share.

Further, growth in the Latin American region should aid the company’s profitability. Additionally, DIRECTV has initiated a massive marketing drive to attract customers to its exclusive programming and such strategies should further help the company gain new subscribers in the coming quarters.

DIRECTV currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of 7.62% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: DIRECTV lags first quarter earnings. The company reported earnings per share of $1.44, lagging the Zacks Consensus Estimate of $1.52.

Revenue: DIRECTV generated total revenue of $8,143 million, below the Zacks Consensus Estimate of $8,158 million.

Key Stats to Note: In the first quarter of 2015, DIRECTV U.S. generated revenue of $6,458 million, up 6.1% year over year. Average monthly subscriber churn rate in the reported quarter was 1.37% as compared with 1.45% in the year-ago quarter. Quarterly net subscriber additions were 60,000 compared with addition of 12,000 in the year-ago quarter.

Stock Price: DTV shares were down almost 0.5% due to misses on both the earnings and revenue front. Clearly, the initial reaction to the release is negative.

Check back later for our full write up on this DIRECTV earnings report later!  

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