Discovery Communications, Inc Earnings Cheat Sheet: Profit Rises for Fourth Straight Quarter

S&P 500 (NYSE:SPY) component Discovery Communications, Inc (NASDAQ:DISCA) reported its results for the second quarter. Discovery Communications, Inc. is a global media and entertainment company that offers programming across multiple distribution platforms in more than 170 other countries.

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Discovery Communications, Inc Earnings Cheat Sheet for the Second Quarter

Results: Net income for Discovery Communications, Inc rose to $254 million (62 cents per share) vs. $107 million (25 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 10.8% to $1.07 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DISCA beat the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $1.05 billion.

Quoting Management: David Zaslav, Discovery’s President and Chief Executive Officer said, “Discovery continues to deliver strong financial results, particularly across our unique international platform, as the depth and breadth of our content assets have enabled the company to capitalize on the sustained ad market strength worldwide as well as take advantage of the evolution of pay-tv across the globe. Our growth this past quarter was achieved despite continued strategic investments to further our competitive advantage both domestically and internationally.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 80.5% and in the fourth quarter of the last fiscal year, the figure rose 23.2%.

Gross margin shrank 0.6 percentage point to 73%. The contraction appeared to be driven by increased costs, which rose 13.4% from the year earlier quarter while revenue rose 10.8%.

Revenue has risen the past four quarters. Revenue increased 8.2% to $951 million in the first quarter. The figure rose 5.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.

Competitors to Watch: Scripps Networks Interactive, Inc. (NYSE:SNI), CBS Corporation (NYSE:CBS), Outdoor Channel Hldgs., Inc. (NASDAQ:OUTD), Liberty Media Corp (NASDAQ:LINTA), The Walt Disney Company (NYSE:DIS), News Corporation (NASDAQ:NWSA), Madison Square Garden, Inc. (NASDAQ:MSG), Time Warner Inc. (NYSE:TWX), and Point.360 (NASDAQ:PTSX).

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(Source: Xignite Financials)

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