Needham & Company Lowers Numbers on Discovery Communications (DISCA); Q2 Preview

Needham & Company reiterates a 'Hold' on Discovery Communications (NASDAQ: DISCA).

Analyst, Laura Martin, said, "We are lowering our 2Q12 and FY12 estimates to reflect: (i) lowered expectations in licensing agreements impacting US Distribution revenues; (ii) higher expenses in 1H12 in US Networks, expected to abate somewhat in 2H12; and, (iii) FX movements which are expected to impact negatively International profitability. As a result, we expect 2Q12 revenue of $1,152mm (up 8% y/y and 1% below our previous estimate), OIBDA of $546mm (up 7% y/y and 3% below our previous estimate), implying margins of 47.4%, and Operating EPS of $0.71 (up 15% y/y and 4% below our previous estimate). As a result of the changes in 2Q12, we now expect FY12 revenue of $4.594B (up 8% y/y and 0.7% below our previous estimates), and Operating EPS of $2.67 (up 5% y/y and 2% below our previous estimate)."

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 $50.25 yesterday.

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