DIRECTV Earnings: Third Straight Quarter of Rising Profit

S&P 500 (NYSE:SPY) component DIRECTV (NASDAQ:DTV) reported its results for the second quarter. DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America.

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DIRECTV Earnings Cheat Sheet

Results: Net income for the satellite communications rose to $711 million ($1.09 per share) vs. $701 million (91 cents per share) in the same quarter a year earlier. This marks a rise of 1.4% from the year-earlier quarter.

Revenue: Rose 9.5% to $7.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: DIRECTV fell short of the mean analyst estimate of $1.15 per share. It beat the average revenue estimate of $7.04 billion.

Quoting Management: “DIRECTV’s strong second quarter consolidated results reflect the unique benefits from our diversified portfolio of businesses which are driving industry leading top-line and bottom-line results,” said Mike White, president and CEO of DIRECTV. “DIRECTV Latin America’s results demonstrate our competitive advantages in a rapidly growing market by achieving an all-time record of 645,000 net additions and 20% revenue growth in the quarter even with currency headwinds. In addition, DIRECTV U.S. delivered the highest operating profit before depreciation and amortization growth in two years accelerating to 10%, an early indication of successfully executing on our long term strategy of striking a more optimal balance between growth and profitability.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 8.5% and in the fourth quarter of the last fiscal year, the figure rose 16.2%.

Revenue has increased for four quarters in a row. Revenue increased 11.5% to $7.05 billion in the first quarter. The figure rose 12.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.6% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of $1.07.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for third quarter is 99 cents per share, an increase from 97 cents sixty days ago. The average estimate for the fiscal year is $4.35 per share, falling from $4.38 thirty days ago.

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

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