Discovery Communications Inc.’s fourth-quarter revenues increased year over year — just not enough to satisfy Wall Street.
The David Zaslav-led company reported $1.672 billion at the top line early Tuesday morning, falling shy of media analysts’ $1.69 billion consensus forecast.
However, Discovery’s Q4 profit jumped a healthy 39 percent to $304 million, besting earnings estimates of 47 cents per share by nine cents. That should make shareholders pretty happy.
Revenues for the quarter grew slower than what the market would have liked to see. At the U.S. Networks, the line rose 3 percent, more due to greater distribution (+6 percent) than advertising (+1 percent). Sales were pretty much flat internationally.
The overall net income driver was operating growth mixed with a nice after-tax gain from the Group Nine transaction. Discovery invested $100 million into the new digital company last fall.
On a full-year basis, DCI revenues ticked up 2 percent. Net income increased 15 percent.
With his accountants’ books officially closed for 2016, Zaslav seems pretty pleased with his company’s performance and positioning.
“Discovery’s diversified set of nonfiction, sports and kids’ entertainment brands, and strong strategic positioning continued to drive attractive distribution agreements, helping to deliver solid operating and financial results in 2016,” the president and CEO said. “As we begin 2017, we will continue to invest in our premier global IP and brands to nourish fans across all screens, all platforms and all services to drive shareholder value and propel our business for years to come amid the rapidly changing media landscape.”
DISCA stock closed Monday afternoon at $29.03, up 55 cents per share. Shares ticked up another nickel apiece after-hours.
Company executives will host a conference call at 8:30 a.m. ET to discuss the fourth-quarter and full-year 2016 financials in greater depth.