Discovery Stock Slips as OWN Drags Down Profits

Company misses analysts' expectations

Last Updated: May 8, 2012 @ 9:43 AM

Discovery Communications stock fell more than 6 percent in morning trading Tuesday after the company reported an $84 million loss in profits for the quarter due in part to Oprah Winfrey's struggling OWN.

Discovery also announced a $1 billion increase to its existing $2 billion stock repurchase program.

First quarter revenues of $1.1 million increased $152 million, or 16 percent, over the first quarter a year ago, led by 16 percent growth at U.S. networks and 18 percent growth at international networks. But net income fell to $221 million ($0.57 per diluted share), down $84 million from the $305 million ($0.74 per diluted share) for the first quarter a year ago.

Profits missed analysts' average forecast of 60 cents, according to Thomson Reuters I/B/E/S.

As of 11:15 a.m. ET, Discovery stock had fallen 6.49 percent to $50.57 per share.

More to come…