Discovery Communications Inc Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Discovery Communications Inc (NASDAQ:DISCA) will unveil its latest earnings on Thursday, February 16, 2012. Discovery Communications is a global media and entertainment company that offers programming across multiple distribution platforms in more than 170 other countries.

Discovery Communications Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 69 cents per share, a rise of 30.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 34.3% versus last year to $2.39.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at net income of 59 cents a share versus the estimate of profit of 55 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 8.8% in revenue from the year-earlier quarter to $1.11 billion.

Analyst Ratings: Analysts seem relatively indifferent about Discovery Communications with 10 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 27.4% to $237 million (59 cents a share) from $186 million (43 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 18.3% to $1.09 billion from $926 million.

Key Stats:

The company’s net income rise has increased in each of the last three quarters. Net income rose more than twofold in the second quarter and 80.5% in the first quarter.

For four quarters in a row, revenue has increased. Revenue rose 10.8% in the second quarter from the year earlier, climbed 8.2% in the first quarter from the year-ago quarter and 5.3% in the fourth quarter of the last fiscal year.

Stock Price Performance: Between December 13, 2011 and February 10, 2012, the stock price had risen $3.57 (8.7%), from $41.22 to $44.79. The stock price saw one of its best stretches over the last year between January 3, 2012 and January 12, 2012, when shares rose for eight straight days, increasing 6.5% (+$2.66) over that span. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven straight days, dropping 7.6% (-$3.30) over that span.

(Company fundamentals 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

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