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Discovery (DISCA) Q3 Earnings Up Y/Y, Revenues Miss Estimates
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Discovery reported third-quarter 2021 earnings of 24 cents per share, which decreased 54.5% year over year.
Revenues increased 23% year over year to $3.150 billion but missed the Zacks Consensus Estimate by 0.3%.
The consensus mark for earnings was pegged at 40 cents per share.
Top-Line Details
Advertising revenues increased 11.6% year over year to $1.46 billion. Distribution revenues increased 15% year over year to $1.38 billion. Other revenues were $313 million compared with $56 million reported in the year-ago quarter.
U.S. Networks (59% of revenues) revenues increased 12% on a year-over-year basis to $1.86 billion. Advertising revenues increased 5.3% while distribution revenues grew 20.8%.
Subscribers of Discovery’s fully distributed networks were 2% lower on a year-over-year basis. Total portfolio subscribers declined 4% year over year.
International Networks revenues (41.1% of revenues) surged 43.6% year over year to $1.30 billion. Advertising revenues and distribution revenues were up 27.9% and 7%, respectively.
Discovery ended the third quarter with 20 million paying direct-to-consumer subscribers.
Operating Details
In the third quarter, selling, general and administrative (SG&A) expenses surged 49.1% from the year-ago quarter to $944 million.
Adjusted operating income before depreciation & amortization (“OIBDA”) decreased 23.9% from the year-ago quarter to $726 million.
U.S. Networks adjusted OIBDA increased 1.3% from the year-ago quarter to $963 million. However, International Networks’ adjusted OIBDA loss was $79 million.
GAAP operating income declined 38% year over year to $329 million.
Balance Sheet
As of Sep 30, 2021, cash & cash equivalents were $3.12 billion compared with $2.8 billion as of Jun 30, 2021.
Zacks Rank & Stocks to Consider
Currently, Discovery carries a Zacks Rank #3 (Hold).
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Discovery (DISCA) Q3 Earnings Up Y/Y, Revenues Miss Estimates
Discovery reported third-quarter 2021 earnings of 24 cents per share, which decreased 54.5% year over year.
Revenues increased 23% year over year to $3.150 billion but missed the Zacks Consensus Estimate by 0.3%.
The consensus mark for earnings was pegged at 40 cents per share.
Top-Line Details
Advertising revenues increased 11.6% year over year to $1.46 billion. Distribution revenues increased 15% year over year to $1.38 billion. Other revenues were $313 million compared with $56 million reported in the year-ago quarter.
Discovery, Inc. Price
Discovery, Inc. price | Discovery, Inc. Quote
U.S. Networks (59% of revenues) revenues increased 12% on a year-over-year basis to $1.86 billion. Advertising revenues increased 5.3% while distribution revenues grew 20.8%.
Subscribers of Discovery’s fully distributed networks were 2% lower on a year-over-year basis. Total portfolio subscribers declined 4% year over year.
International Networks revenues (41.1% of revenues) surged 43.6% year over year to $1.30 billion. Advertising revenues and distribution revenues were up 27.9% and 7%, respectively.
Discovery ended the third quarter with 20 million paying direct-to-consumer subscribers.
Operating Details
In the third quarter, selling, general and administrative (SG&A) expenses surged 49.1% from the year-ago quarter to $944 million.
Adjusted operating income before depreciation & amortization (“OIBDA”) decreased 23.9% from the year-ago quarter to $726 million.
U.S. Networks adjusted OIBDA increased 1.3% from the year-ago quarter to $963 million. However, International Networks’ adjusted OIBDA loss was $79 million.
GAAP operating income declined 38% year over year to $329 million.
Balance Sheet
As of Sep 30, 2021, cash & cash equivalents were $3.12 billion compared with $2.8 billion as of Jun 30, 2021.
Zacks Rank & Stocks to Consider
Currently, Discovery carries a Zacks Rank #3 (Hold).
AMC Entertainment (AMC - Free Report) , Clarus (CLAR - Free Report) and Callaway Golf are some better-ranked stocks in the broader Consumer & Discretionary sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both AMC and Clarus are set to report their quarterly results on Nov 8. Callaway Golf is scheduled to report the same on Nov 9.