The DIRECTV Group Earnings Cheat Sheet: Double-Digit Revenue Growth Continues

S&P 500 (NYSE:SPY) component The DIRECTV Group, Inc. (NASDAQ:DTV) reported net income above Wall Street’s expectations for the second quarter. DIRECTV acquires and distributes digital entertainment programming in the U.S. and Latin America. .

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The DIRECTV Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for The DIRECTV Group, Inc. rose to $701 million (91 cents per share) vs. $543 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 29.1% from the year earlier quarter.

Revenue: Rose 12.9% to $6.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DTV beat the mean analyst estimate of 85 cents per share. Analysts were expecting revenue of $6.54 billion.

Quoting Management: “Consolidated revenue accelerated to 13% exceeding both last year and first quarter growth rates as DIRECTV Latin America’s continued record subscriber additions coupled with strong ARPU growth propelled a 46% increase in DTVLA revenues while DIRECTV U.S. delivered another solid quarter of industry leading revenue growth of 7%,” said Mike White, President and CEO of DIRECTV. “Importantly, the significant subscriber performance in Latin America did not come at the expense of profitability as DTVLA’s OPBDA grew 60% fueling our consolidated OPBDA growth to 13%. While a challenging economic and competitive landscape continues to impact DIRECTV U.S., the substantial and growing contributions from DTVLA combined with our share repurchase program drove strong EPS growth of 52% in the quarter.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 11.7%, with the biggest boost coming in the most recent quarter when revenue rose 12.9% from the year earlier quarter.

Gross margin shrank 0.4 percentage point to 50.7%. The contraction appeared to be driven by increased costs, which rose 13.9% from the year earlier quarter while revenue rose 12.9%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 11 cents in the first quarter and by 12 cents in the fourth quarter of the last fiscal year.

Competitors to Watch: Comcast Corporation (NASDAQ:CMCSA), Time Warner Cable Inc. (NYSE:TWC), Cablevision Systems Corp. (NYSE:CVC), Time Warner Inc. (NYSE:TWX), The Walt Disney Company (NYSE:DIS), CBS Corporation (NYSE:CBS), Mediacom Communications Corp. (NASDAQ:MCCC), News Corporation (NASDAQ:NWSA), Liberty Global Inc. (NASDAQ:LBTYA), Charter Communications, Inc. (NASDAQ:CHTR), Netflix (NASDAQ:NFLX), TiVo (NASDAQ:TIVO), DirectTV (NASDAQ:DTV), Dish Network (NASDAQ:DISH) and Entravision Communication (NYSE:EVC).

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(Source: Xignite Financials)