Discovery Q1 Earnings Rise But Slightly Miss Forecasts

The numbers are OK, but investors may be cranky: This is the third time in a row that Discovery Communications‘ earnings have fallen short of the Street’s projections. The company reported Q1 net income of $231M, +3.6% vs the period last year, on revenues of $1.16B, +6.5%. The top line is a little ahead of the $1.15B that analysts anticipated. But earnings at 64 cents a share are a penny shy of the consensus forecast. Revenues for the U.S. networks were up just 1% to $686M. The segment suffered in comparison to last year when it benefited from a slug of cash from streaming services. Distribution revenues were down 9% year-over-year. Yet many may be surprised to see ad sales up 8%; some analysts expected to see a number closer to 10%. All told, the adjusted cash flow for the U.S. networks fell 5% to $377M. International was a different story with revenues up 17% to $444M, and adjusted cash flow +8% to $184M. Discovery projects that it will end this year with as much as $5.7B in revenue and as much as $1.3B in net income available to shareholders. (more…)

This article was printed from https://deadline.com/2013/05/discovery-q1-earnings-rise-but-slightly-miss-forecasts-491626/