DirecTV Earns $1.28 Per Share

DirecTV ($DTV) just reported Q3 earnings of $1.28 per share, which was 26 cents more than consensus. In the U.S., DirecTV added 139,00 subscribers which doubled expectations. This is happening at the same time that Time Warner and Comcast are hemorrhaging subs.

“DirecTV didn’t give customers any reason to cancel in terms of blackouts or anything like that,” said Brean Capital analyst Todd Mitchell. “DirecTV has been good at picking up customers after blackouts.”

Shares of DirecTV rose 2.5 percent to $66 in trading before the market opened.

ISI analyst Vijay Jayant said the low churn could be because of the company’s exclusive National Football League Sunday Ticket package, which lets DirecTV customers watch out-of-market games every Sunday. Promotion for that product ramped up in the third quarter.

Net income attributable to DirecTV was $699 million, or $1.28 per share, compared with $565 million, or 90 cents share, a year earlier.

Excluding a fee settlement and other special items, earnings came to $1.13 per share, which beat the analysts’ average estimate by 12 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 6 percent to $7.88 billion, narrowly exceeding analysts’ estimates of $7.84 billion.

In Latin America, DirecTV added 260,000 subscribers, while StreetAccount was looking for 371,900.

Posted by on November 5th, 2013 at 8:00 am


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