DIRECTV Earnings: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

S&P 500 (NYSE:SPY) component DIRECTV (NASDAQ:DTV) reported net income above Wall Street’s expectations for the fourth quarter. DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America.

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DIRECTV Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the catv systems company rose to $718 million ($1.02 per share) vs. $618 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 16.2% from the year earlier quarter.

Revenue: Rose 12.7% to $7.46 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DIRECTV beat the mean analyst estimate of 91 cents per share. Analysts were expecting revenue of $7.41 billion.

Quoting Management: “Our fourth quarter results capped off another strong year of industry leading growth as we further extended our position as the world’s largest provider of pay television services with nearly 32 million subscribers in the U.S. and Latin America,” said Mike White, president and CEO of DIRECTV. “Strong consumer demand for DIRECTV and SKY’s premium brands drove full year gross additions in both our U.S. and Latin American businesses to all-time highs fueling the largest annual net gain in DIRECTV’s history of nearly 3.7 million subscribers including Sky Mexico. The tremendous subscriber performance along with solid ARPU growth fueled an acceleration of full year consolidated revenue growth to 13% exceeding the growth rates recorded over the past two years. In addition, earnings per share grew by over 50% in 2011 due to the higher operating profit at both DIRECTV U.S. and Latin America, as well as our share repurchase program.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 12.5%, with the biggest boost coming in the third quarter when revenue rose 13.6% from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 70 cents versus a mean estimate of net income of 73 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is $1.07 per share, up from $1.05 ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $3.37 per to share to $3.39.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com