Discovery Communications, Inc Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Discovery Communications, Inc (NASDAQ:DISCA) will unveil its latest earnings on Thursday, August 4, 2011. Discovery Communications, Inc. is a global media and entertainment company that offers programming across multiple distribution platforms in more than 170 other countries. Exclusive: Media Legend Larry Kramer Says Media Business is in a Gutenberg Moment>>

Discovery Communications, Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 61 cents per share, a rise of 24.5% 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 and it has not changed during the last month. For the year, analysts are projecting net income of $2.30 per share, a rise of 29.2% from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 49 cents per share against the mean estimate of 47 cents. In the prior quarter, the company reported net income of 53 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.05 billion in revenue this quarter, a rise of 9% from the year ago quarter. Analysts are forecasting total revenue of $4.1 billion for the year, a rise of 8.8% from last year’s revenue of $3.77 billion.

Analyst Ratings: 12 out of 22 analysts surveyed (54.5%) have a buy rating on Discovery Communications.. This is below the mean analyst rating of nine competitors, which average 59.1% buy ratings.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 80.5% while it rose 23.2% in the fourth quarter of the last fiscal year and 84.2% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.2% to $951 million in first quarter. The figure rose 5.3% in the fourth quarter of the last fiscal year from the year earlier, climbed 8.4% in the third quarter of the last fiscal year from the year-ago quarter and 9.3% in the second 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).

Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $4.40 (-10%) from $44.20 to $39.80. The stock price saw one of its best stretches over the last year between February 1, 2011 and February 11, 2011 when shares rose for nine-straight days, rising 12.2% (+$4.75) over that span. It saw one of its worst periods between May 27, 2011 and June 6, 2011 when shares fell for six-straight days, falling 6.1% (-$2.65) over that span. Shares are down $1.90 (-4.6%) year to date.

(Source: Xignite Financials)

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