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Discovery (DISCA) Q3 Earnings & Revenues Miss Estimates
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Silver Spring, MD-based Discovery Communications, Inc. reported lackluster results for the third quarter of 2016. The company’s third-quarter 2016 earnings (on an adjusted basis) of 40 cents per share missed the Zacks Consensus Estimate of 43 cents. Earnings also declined from the year-ago figure by 15%.
Discovery’s third-quarter revenues of $1,556 million were flat on a year-over-year basis. Revenues, however, narrowly missed the Zacks Consensus estimate of $1,565 million. Foreign currency movements impacted results as revenue improvement in the U.S. networks and Education and Other was offset by a decline in International Networks revenues.
Quarterly Performance
Total Distribution revenue was $806 million, up 3.9% year over year. Total Advertising revenue came in at $670 million, down 4.1% year over year. Other revenues decreased 2.4% to $80 million. Quarterly expenses (on a reported basis) increased 4.4% to $1,098 million in the reported quarter. Quarterly adjusted operating income before depreciation and amortization (OIBDA) dipped 2% year over year to $562 million.
The Zacks Rank #4 (Sell) company exited the quarter with cash and cash equivalents of $224 million and $7,901 million of debt outstanding (non-current portion) compared with $390 million and $7,616 million, respectively, at the end of 2015.
The company bought back shares worth $374 million in the reported quarter.
Total revenue came in at $793 million, up 2% year over year. Distribution revenues of the segment were up 7% year over year, whereas advertising revenues were down 3% from the year-ago quarter. Other revenues rose 14%. Adjusted OIBDA was up 3% year over year. Adjusted OIBDA margin was 58% in the reported quarter as against 57% a year ago.
International Networks
Total revenue came in at $720 million, down 3% year over year. Distribution revenues increased 1%, whereas advertising revenues fell 6%, on a year-over-year basis. Other revenues deteriorated 31% year over year. Furthermore, adjusted OIBDA decreased 16% on a year-over-year basis. Adjusted OIBDA margin was 25% compared with 29% in the prior-year quarter.
Education & Other
Total revenue at the segment was $43 million, up 19% year over year.
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Discovery (DISCA) Q3 Earnings & Revenues Miss Estimates
Silver Spring, MD-based Discovery Communications, Inc. reported lackluster results for the third quarter of 2016. The company’s third-quarter 2016 earnings (on an adjusted basis) of 40 cents per share missed the Zacks Consensus Estimate of 43 cents. Earnings also declined from the year-ago figure by 15%.
Discovery’s third-quarter revenues of $1,556 million were flat on a year-over-year basis. Revenues, however, narrowly missed the Zacks Consensus estimate of $1,565 million. Foreign currency movements impacted results as revenue improvement in the U.S. networks and Education and Other was offset by a decline in International Networks revenues.
Quarterly Performance
Total Distribution revenue was $806 million, up 3.9% year over year. Total Advertising revenue came in at $670 million, down 4.1% year over year. Other revenues decreased 2.4% to $80 million. Quarterly expenses (on a reported basis) increased 4.4% to $1,098 million in the reported quarter. Quarterly adjusted operating income before depreciation and amortization (OIBDA) dipped 2% year over year to $562 million.
The Zacks Rank #4 (Sell) company exited the quarter with cash and cash equivalents of $224 million and $7,901 million of debt outstanding (non-current portion) compared with $390 million and $7,616 million, respectively, at the end of 2015.
The company bought back shares worth $374 million in the reported quarter.
Discovery faces intense competition from peers like Central European Media , CBS Corp. and Cumulus Media (CMLS - Free Report) . All three companies carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DISCOVERY COM-A Price, Consensus and EPS Surprise
DISCOVERY COM-A Price, Consensus and EPS Surprise | DISCOVERY COM-A Quote
Segmental Details
U.S. Networks
Total revenue came in at $793 million, up 2% year over year. Distribution revenues of the segment were up 7% year over year, whereas advertising revenues were down 3% from the year-ago quarter. Other revenues rose 14%. Adjusted OIBDA was up 3% year over year. Adjusted OIBDA margin was 58% in the reported quarter as against 57% a year ago.
International Networks
Total revenue came in at $720 million, down 3% year over year. Distribution revenues increased 1%, whereas advertising revenues fell 6%, on a year-over-year basis. Other revenues deteriorated 31% year over year. Furthermore, adjusted OIBDA decreased 16% on a year-over-year basis. Adjusted OIBDA margin was 25% compared with 29% in the prior-year quarter.
Education & Other
Total revenue at the segment was $43 million, up 19% year over year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>