DIRECTV Hits Estimates in Solid Quarter

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DIRECTV (NAS: DTV) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), DIRECTV met expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.


Gross margins dropped, operating margins increased, and net margins shrank.

Revenue details
DIRECTV tallied revenue of $7.05 billion. The 18 analysts polled by S&P Capital IQ expected to see revenue of $7.04 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $6.32 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.07. The 20 earnings estimates compiled by S&P Capital IQ anticipated $1.06 per share. GAAP EPS of $1.07 for Q1 were 26% higher than the prior-year quarter's $0.85 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 49.4%, 100 basis points worse than the prior-year quarter. Operating margin was 18.6%, 40 basis points better than the prior-year quarter. Net margin was 10.4%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.27 billion. On the bottom line, the average EPS estimate is $1.16.

Next year's average estimate for revenue is $29.86 billion. The average EPS estimate is $4.36.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 702 members out of 772 rating the stock outperform, and 70 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give DIRECTV a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DIRECTV is outperform, with an average price target of $53.82.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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