Discovery Communications Inc Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Discovery Communications Inc (NASDAQ:DISCA) will unveil its latest earnings on Tuesday, November 1, 2011. 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 net income of 55 cents per share, a rise of 37.5% 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 moved down. It has risen from 54 cents during the last month. For the year, analysts are projecting profit of $2.31 per share, a rise of 29.8% from last year.

Past Earnings Performance: Last quarter, the company reported net income of 62 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $1.01 billion in revenue this quarter, a rise of 9.1% from the year ago quarter. Analysts are forecasting total revenue of $4.13 billion for the year, a rise of 9.5% from last year’s revenue of $3.77 billion.

Analyst Ratings: 11 out of 20 analysts surveyed (55%) have a buy rating on Discovery Communications.. This is below the mean analyst rating of nine competitors, which average 58.8% buy ratings.

A Look Back: In the second quarter, profit rose more than twofold to $254 million (62 cents a share) from $107 million (25 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.8% to $1.07 billion from $963 million.

Key Stats:

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

Revenue has risen the past four quarters. Revenue rose 8.2% in the first quarter from the year earlier, climbed 5.3% in the fourth quarter of the last fiscal year from the year-ago quarter and 8.4% in the third 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 August 2, 2011 to October 26, 2011, the stock price had risen $3.91 (10.3%) from $38.14 to $42.05. 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 August 15, 2011 and August 22, 2011 when shares fell for six-straight days, falling 8.2% (-$3.22) over that span. Shares are up 35 cents (+0.8%) year to date.

(Source: Xignite Financials)

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