DIRECTV Earnings: Here’s Why Investors are Selling Shares Now

DIRECTV (NASDAQ:DTV) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.28%.

DIRECTV Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.26% to $1.18 in the quarter versus EPS of $1.09 in the year-earlier quarter.

Revenue: Rose 6.59% to $7.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: DIRECTV reported adjusted EPS income of $1.18 per share. By that measure, the company missed the mean analyst estimate of $1.33. It missed the average revenue estimate of $7.75 billion.

Quoting Management: “Our second quarter consolidated results highlight the benefits of our diversified portfolio of businesses as DIRECTV, the world’s largest pay-TV company, grew its subscriber base to nearly 37 million customers,” said Mike White, president and CEO of DIRECTV. “While macro-economic and operational challenges in Latin America impacted our results, particularly in Brazil, contributions from successfully executing on DIRECTV U.S.’ long term strategic imperatives combined with our share repurchase program drove solid revenue, earnings per share and free cash flow in the quarter.”

Key Stats (on next page)…

Revenue increased 1.58% from $7.58 billion in the previous quarter. EPS decreased 1.67% from $1.20 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.07 to a profit $1.08. For the current year, the average estimate has moved up from a profit of $4.81 to a profit of $4.90 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)