Discovery Communications Adj. Profit Tops View, Backs 2014 Outlook

(RTTNews) - Media and entertainment company Discovery Communications, Inc. (DISCA, DISCB, DISCK) reported Tuesday a profit for the first quarter that edged down from last year despite double-digit revenue growth, hurt by amortization charges.

However, adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates by a whisker. The company also reaffirmed its net income and revenue forecast for the full-year 2014.

"Discovery's strong organic growth continued during the first quarter as our unparalleled global reach and sustained investment in diverse and engaging content allowed us to capitalize on the growing demand for pay-tv programming worldwide. The larger audiences and consistent market share gains we are delivering are driving sustained financial results, even as we further invest in our platforms and integrate strategic acquisitions that will enhance our long-term growth prospects," President and CEO David Zaslav said in a statement.

The Silver Spring, Maryland-based provider of Discovery Channel, TLC, Animal Planet, and Science Channel reported net income of $231 million or $0.66 per share for the first quarter, compared to $233 million or $0.63 per share in the prior-year quarter.

Results for the latest quarter include $0.09 per share of amortization associated with the purchase price allocation for the SBS Nordic transaction.

Excluding the items, adjusted net income for the quarter was $0.75 per share, compared to $0.63 per share in the year-ago quarter.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased 22 percent to $1.41 billion from $1.16 billion in the same quarter last year, led by 51 percent growth at international networks and 3 percent growth at U.S. networks. Twenty-two Wall Street analysts had a consensus revenue estimate of $1.43 billion for the quarter.

"As we look to the remainder of 2014, leveraging the significant opportunities across our existing asset portfolio remains our priority so we can maintain our financial momentum while further building long-term shareholder value," Zaslav added.

Looking ahead to fiscal 2014, Discovery Communications continues to expect net income in a range of $1.2 billion to $1.3 billion, on projected revenues between $6.45 billion and $6.625 billion.

Street is currently looking for full-year 2014 earnings of $3.67 per share, on annual revenues of $6.52 billion.

DISCA closed Monday's regular trading session at $77.77, up $1.94 on a volume of 1.73 million shares. In the past 52-week period, the stock has been trading in a range of $72.77 to $90.76.