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Discovery (DISCA) Q4 Earnings Beat, Revenue Lag Estimates

Silver Spring, MD-based Discovery Communications, Inc . DISCA reported mixed results for the fourth quarter of 2016. The company's earnings (on an adjusted basis) of 56 cents per share beat the Zacks Consensus Estimate of 51 cents. Earnings also improved 47.37% from the year-ago figure.

Discovery's fourth-quarter revenues of $1,672 million improved approximately 2% on a year-over-year basis despite the adverse impact of foreign currency movements. Revenues, however, narrowly missed the Zacks Consensus estimate of $1,673.8 million.

The revenue improvement witnessed in the U.S. Networks and International Networks units was somewhat mitigated by the disappointing performance of the Education and Other division.Quarterly adjusted operating income before depreciation and amortization (OIBDA) increased 1% year over year.

Quarterly Performance

Revenues in the US Networks division climbed 3% to $812 million. Segmental growth was driven by a 6% rise in distribution revenues to $375 million. Advertising revenues climbed 1% to $421 million while revenues from other sources increased 14% to $16 million. Moreover, adjusted OIBDA was up 9% year over year for the segment. Adjusted OIBDA margin was 55% in the reported quarter as against 52% a year ago.

In addition, international networks revenues climbed marginally to $819 million. While distribution revenues in the segment climbed 3% to $418 million, advertising revenues declined 2% to $379 million. Revenues from other sources also decreased 19% to $22 million. Moreover, adjusted OIBDA decreased 12% on a year-over-year basis. Adjusted OIBDA margin was 28% compared with 32% in the prior-year quarter.

Additionally, revenues from the Education and Other division decreased 5% to $41 million.

This Zacks Rank #4 (Sell) company exited 2016 with cash and cash equivalents of $300 million and $7,841 million of debt outstanding (non-current portion) compared with $390 million and $7,616 million, respectively, at the end of 2015. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

The company bought back shares worth $1,374 million in the reported quarter.

Discovery Communications, Inc. Price, Consensus and EPS Surprise

Discovery Communications, Inc. Price, Consensus and EPS Surprise | Discovery Communications, Inc. Quote

Other Important Releases

Consumers interested in the broader Consumer-Discretionary space will now keenly await fourth-quarter earnings reports from the likes of that include Scripps Networks Interactive, Inc. SNI , IMAX Corp. IMAX and Norwegian Cruise Line Holdings Ltd. NCLH . While Scripps Networks is scheduled to release results on Feb 21, Norwegian Cruise Line Holdings and IMAX will unveil results on Feb 22 and Feb 23, respectively.

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Scripps Networks Interactive, Inc (SNI): Free Stock Analysis Report

Discovery Communications, Inc. (DISCA): Free Stock Analysis Report

Imax Corporation (IMAX): Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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