UPDATE: Discovery Communications Posts Upbeat Q4 Profit, Revenue Misses Views

Discovery Communications Inc. DISCA reported better-than-expected earnings for the fourth quarter. The Silver Spring, Maryland-based company posted quarterly earnings of $250 million, or $0.38 per share, compared to $289 million, or $0.41 per share, in the year-ago period. Excluding special items, the company's earnings shrank to $0.43 per share from $0.46 per share. Its revenue climbed 9% to $1.68 billion. However, analysts were expecting earnings of $0.41 per share on revenue of $1.70 billion. U.S. Networks' revenue rose 1% to $745 million in the quarter, while international networks' revenue climbed 17% to $884 million in the quarter. Advertising revenue climbed 7% in the international market, while ad revenue from U.S. networks dropped 3.2%. Operating income before depreciation and amortization for the international networks climbed 11%, while domestic networks OIBDA dropped 7%. Free cash flow climbed 23% to $390 million for the quarter. During the quarter, Discovery repurchased 7.9 million shares of its Series C common stock at an average price of $34.75 per share for a total of $274 million. David Zaslav, President and Chief Executive Officer of Discovery Communications said, "Despite a more challenging U.S market and significant foreign currency headwinds, our content portfolio once again drove audience gains and boosted our market share around the world. As we move into 2015, we are confident that our long-term content investment strategy, strong global IP and brands, and local approach to markets will continue to drive our results and enable us to deliver additional value to shareholders." Discovery shares rose 0.32% to close at $30.90 yesterday.