Domestic ad rates rise 5 percent, if you need some good news to hang a hat on
Discovery Communications missed Wall Street’s marks with its fourth-quarter 2015 financials, reporting earnings of $0.34 per share on $1.65 billion in revenue.
The culprit for declines at the top and bottom lines was mostly some unfavorable international currency exchange rates, the company said. Domestically, advertising sales did rise 5 percent, and distribution was up 7 percent — but overseas revenue losses shut both of those down.
Media analysts expected earnings per share (EPS) this quarter of $0.41 on $1.67 billion in revenue, per Yahoo Finance. The Zacks consensus foresaw the EPS coming in even a nickel higher. Neither of those figures were touched — even if one includes another 4 cents worth of actual earnings adjustments.
“In 2015, Discovery Communications continued to build momentum with our unmatched worldwide brands and leading multiplatform distribution network. We surpassed 3 billion cumulative viewers, launched more new networks and increased audience and market share, all of which helped to drive steady global growth and strong financial results,” said David Zaslav, president and chief executive officer. “Propelled by our category leadership, broad rights ownership and content and brand expansion across platforms, Discovery is well positioned to thrive in the rapidly evolving media landscape and to drive continued shareholder value in the years ahead.”
DISCA closed on Wednesday at $26.71. That was up $1.15 per share, or 4.5 percent.
Discovery senior executives will host a conference call to discuss the fourth-quarter and full-year financial results at 8:30 a.m. ET.