Discovery Communications Q2 Earnings Beat Estimates

Discovery Communications Inc. DISCA reported better-than-expected earnings for the second quarter. The Silver Spring, Maryland-based company posted quarterly earnings of $286 million, or $0.44 per share, versus $379 million, or $0.54 per share, in the year-ago period. Excluding one-time items, the company's earnings slipped to $0.49 per share from $0.58 per share. Its revenue surged to $1.65 billion from $1.61 billion. However, analysts were projecting a profit of $0.48 per share on revenue of $1.67 billion. The average estimate among 3 Estimize users was for earnings of $0.49 per share and revenue of $1.69 billion. U.S. Networks' revenue rose 5 percent to $814 million in the second quarter, while International Networks' revenue gained 1 percent to $801 million. Its adjusted OIBDA dropped 2 percent to $680 million for the quarter. During the quarter, the company repurchased 3.9 million shares of its Series C common stock for a total of $123 million. "Driven by our unmatched portfolio and steady growth around the world, Discovery's strong start to the year continued in the second quarter," said Discovery Communications President and CEO David Zaslav. "We have carried that momentum into the third quarter and signed three landmark deals - the historic agreement for the Olympic Games in Europe, our agreement to acquire full ownership of Eurosport and our comprehensive long-term renewal with Comcast - that will bolster Discovery's position and market share for years to come." For the full year ending December 31, 2015, the company projects revenue, excluding currency, to rise in the high single to low double digit range and adjusted earnings per share excluding currency to increase in low double digits range. Discovery Communications shares gained 0.46 percent to close at $32.86 yesterday.