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Discovery (DISCA) to Report Q1 Earnings: What's in Store?
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Discovery is set to report first-quarter 2020 results on May 6.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at 89 cents per share over the past 30 days. The figure indicates 2.3% growth from the year-ago reported figure.
The consensus mark for revenues, pegged at $2.75 billion, implies a 1.6% rise from the year-ago reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing the same in the rest, the average positive surprise being 4.8%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Discovery’s first-quarter 2020 results are expected to have benefited from a strong content portfolio. Viewership is expected to have increased as more and more people stayed at home due to the coronavirus-led lockdowns and shelter-in-place guidelines.
The company is likely to have gained traction from the growing popularity of Food Network. Further, the increasing availability of its content across linear, digital over-the-top platforms like Hulu and Sling TV is expected to have improved traffic.
International revenues are also likely to have got a boost from the U.K. TV Lifestyle business. Additionally, the company’s solid presence in Europe, courtesy of TVN in Poland, Dplay in the Nordics and Joyn in Germany (Discovery’s joint venture with ProSieben), is expected to have aided viewership in the region.
However, lower ad demand and spending due to the coronavirus outbreak is expected to have hurt Discovery’s top-line growth in to-be-reported quarter. The company generates more than 55% of its revenues from advertising. Moreover, cancellation of sporting events globally due to the pandemic is expected to have deterred growth.
Moreover, the bottom-line performance is likely to have reflected in incremental spending on direct-to-consumer initiatives and International growth efforts during the quarter. Also, intensifying competition in the Pay-TV market is expected to have a bearing on the company’s first-quarter results.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Discovery has an Earnings ESP of +1.24% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering as per our model, these have the right combination of elements to beat on earnings this reporting cycle:
Shopify (SHOP - Free Report) has an Earnings ESP of +5.44% and is #2 Ranked.
ANSYS (ANSS - Free Report) has an Earnings ESP of +2.14% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock 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.
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Discovery (DISCA) to Report Q1 Earnings: What's in Store?
Discovery is set to report first-quarter 2020 results on May 6.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at 89 cents per share over the past 30 days. The figure indicates 2.3% growth from the year-ago reported figure.
The consensus mark for revenues, pegged at $2.75 billion, implies a 1.6% rise from the year-ago reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing the same in the rest, the average positive surprise being 4.8%.
Discovery, Inc. Price and EPS Surprise
Discovery, Inc. price-eps-surprise | Discovery, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Discovery’s first-quarter 2020 results are expected to have benefited from a strong content portfolio. Viewership is expected to have increased as more and more people stayed at home due to the coronavirus-led lockdowns and shelter-in-place guidelines.
The company is likely to have gained traction from the growing popularity of Food Network. Further, the increasing availability of its content across linear, digital over-the-top platforms like Hulu and Sling TV is expected to have improved traffic.
International revenues are also likely to have got a boost from the U.K. TV Lifestyle business. Additionally, the company’s solid presence in Europe, courtesy of TVN in Poland, Dplay in the Nordics and Joyn in Germany (Discovery’s joint venture with ProSieben), is expected to have aided viewership in the region.
However, lower ad demand and spending due to the coronavirus outbreak is expected to have hurt Discovery’s top-line growth in to-be-reported quarter. The company generates more than 55% of its revenues from advertising. Moreover, cancellation of sporting events globally due to the pandemic is expected to have deterred growth.
Moreover, the bottom-line performance is likely to have reflected in incremental spending on direct-to-consumer initiatives and International growth efforts during the quarter. Also, intensifying competition in the Pay-TV market is expected to have a bearing on the company’s first-quarter results.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Discovery has an Earnings ESP of +1.24% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering as per our model, these have the right combination of elements to beat on earnings this reporting cycle:
Etsy (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify (SHOP - Free Report) has an Earnings ESP of +5.44% and is #2 Ranked.
ANSYS (ANSS - Free Report) has an Earnings ESP of +2.14% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock 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.
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