Discovery Communications (NASDAQ:DISCA) Shares Gap Up After Strong Earnings

Shares of Discovery Communications Inc. (NASDAQ:DISCA) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $28.39, but opened at $29.18. Discovery Communications shares last traded at $29.54, with a volume of 5,487,368 shares.

The company reported $1.61 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.99 by $0.62. The company had revenue of $2.89 billion during the quarter, compared to analysts’ expectations of $2.89 billion. Discovery Communications had a return on equity of 20.10% and a net margin of 9.00%. The business’s revenue was up 1.4% on a year-over-year basis. During the same period last year, the firm posted $0.77 earnings per share.

A number of research firms have commented on DISCA. Wolfe Research lowered Discovery Communications from an “outperform” rating to a “peer perform” rating in a research note on Thursday, May 30th. Imperial Capital raised their price objective on Discovery Communications from $29.00 to $30.00 and gave the stock an “in-line” rating in a research note on Monday, June 24th. BidaskClub lowered Discovery Communications from a “buy” rating to a “hold” rating in a research note on Wednesday, July 24th. Finally, ValuEngine lowered Discovery Communications from a “hold” rating to a “sell” rating in a research note on Monday, May 13th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and nine have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $33.89.

In other Discovery Communications news, insider Bruce Campbell sold 10,000 shares of Discovery Communications stock in a transaction dated Tuesday, June 11th. The stock was sold at an average price of $28.89, for a total transaction of $288,900.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Peter Faricy bought 35,900 shares of the business’s stock in a transaction on Tuesday, May 28th. The shares were bought at an average cost of $27.91 per share, for a total transaction of $1,001,969.00. Following the completion of the acquisition, the chief executive officer now directly owns 182,367 shares in the company, valued at approximately $5,089,862.97. The disclosure for this purchase can be found here. Company insiders own 4.43% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Municipal Employees Retirement System of Michigan purchased a new position in Discovery Communications in the 4th quarter valued at about $119,000. APG Asset Management N.V. purchased a new position in shares of Discovery Communications during the 4th quarter worth about $489,000. Norges Bank purchased a new position in shares of Discovery Communications during the 4th quarter worth about $8,821,000. Geode Capital Management LLC lifted its holdings in shares of Discovery Communications by 19.2% during the 4th quarter. Geode Capital Management LLC now owns 2,741,634 shares of the company’s stock worth $67,746,000 after acquiring an additional 441,740 shares during the period. Finally, Addenda Capital Inc. lifted its holdings in shares of Discovery Communications by 21.6% during the 1st quarter. Addenda Capital Inc. now owns 142,988 shares of the company’s stock worth $3,863,000 after acquiring an additional 25,365 shares during the period. 35.02% of the stock is currently owned by hedge funds and other institutional investors.

The company has a market cap of $15.32 billion, a price-to-earnings ratio of 14.00, a PEG ratio of 0.39 and a beta of 1.53. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.16 and a quick ratio of 1.16. The firm has a fifty day moving average price of $30.91.

About Discovery Communications (NASDAQ:DISCA)

Discovery, Inc operates as a media company worldwide. The company operates through two segments, U.S. Networks and International Networks. The company owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, MotorTrend, Food Network, HGTV, Travel Channel, TVN, DIY Network, Cooking Channel, Discovery Family Channel, American Heroes Channel, Destination America, Discovery Life, Discovery en Espanol, Discovery Familia, Great American Country, the Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks.

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