Nomura Securities Maintains a 'Neutral' on Discovery (DISCA); Good Top-Line Quarter Filled with Asterisks
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Price: $24.43 --0%
Rating Summary:
12 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Discovery Communications (NASDAQ: DISCA) price target of $46.00.
Analyst, Michael Nathanson, said, "We calculate Discovery’s 4Q11 adjusted EPS of $0.64, $0.06 below our estimates and $0.05 below consensus. However, there were lots of moving pieces on the expense side. Including the $20mn content impairment and amortization rates changes, 4Q EBITDA came in $40mn below our estimate at $498mn, 8% Y/Y (vs. our 17% growth estimate). Below the line, we are adjusting for a $20mn commerce charge and $112mn foreign tax credit. The company also repurchased $265mn stock in the quarter, lower than our $355mn estimate."
"Management commented on CY12 guidance. Discovery expects 2012 revenue in the range of $4.45-$4.575bn and EBITDA to be within the range of $2.05-$2.15bn (vs. our last published estimate of $2.1bn). Implied EPS guidance of $2.59-$2.85 (vs. our last published $2.91) from its net income guidance of $9.75-$1.075bn currently assumes $1bn in share buybacks. Our estimates are under review."
For an analyst ratings summary and ratings history on Discovery Communications click here. For more ratings news on Discovery Communications click here.
Shares of Discovery Communications closed at $45.75 yesterday.
Analyst, Michael Nathanson, said, "We calculate Discovery’s 4Q11 adjusted EPS of $0.64, $0.06 below our estimates and $0.05 below consensus. However, there were lots of moving pieces on the expense side. Including the $20mn content impairment and amortization rates changes, 4Q EBITDA came in $40mn below our estimate at $498mn, 8% Y/Y (vs. our 17% growth estimate). Below the line, we are adjusting for a $20mn commerce charge and $112mn foreign tax credit. The company also repurchased $265mn stock in the quarter, lower than our $355mn estimate."
"Management commented on CY12 guidance. Discovery expects 2012 revenue in the range of $4.45-$4.575bn and EBITDA to be within the range of $2.05-$2.15bn (vs. our last published estimate of $2.1bn). Implied EPS guidance of $2.59-$2.85 (vs. our last published $2.91) from its net income guidance of $9.75-$1.075bn currently assumes $1bn in share buybacks. Our estimates are under review."
For an analyst ratings summary and ratings history on Discovery Communications click here. For more ratings news on Discovery Communications click here.
Shares of Discovery Communications closed at $45.75 yesterday.
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