DirecTV Earns $1.07 Per Share

DirecTV ($DTV) reported first-quarter earnings of $1.07 per share. That beat Wall Street’s consensus by either one or two cents, depending on the source. A year ago, DTV earned just 85 cents per share.

DirecTV’s sales rose 12% to $7.05 billion which was $10 million more than consensus. The company has done well in North America, but they see their future lying in Latin America.

Put it this way: DTV added 81,000 subscribers in the U.S. last quarter. In Latin America, they aded 593,000. Yet there are more than twice as many current subscribers in the U.S. as there are in Latin America.

The problem is that it costs more to get a subscriber in Latin America, so that hurts DTV’s margins. This was a good quarter for DTV. The stock is off some because it wasn’t the kind of blowout quarter that we’ve seen.

The company said that it plans to make $4 per share this year and $5 next year. I think they can surpass those marks with ease.

Posted by on May 8th, 2012 at 10:20 am


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