Discovery Communications Issues FY16 Guidance; Q1 Profit Beats Estimates

(RTTNews) - Discovery Communications, Inc. (DISCA) said, for the full year ending December 31, 2016, Discovery expects adjusted EPS excluding currency effects to grow at least high teens and free cash flow excluding currency effects to grow at least high teens.

First-quarter net income available to Discovery increased 5% to $263 million or $0.42 per share compared to $250 million or $0.37 per share for the first quarter of 2015, primarily due to improved operating results, a decrease in taxes, lower currency-related losses, and a gain from the sale of SBS Radio, partially offset by higher equity-based compensation and a decline in income from equity investees.

Adjusted earnings per share was up 10% to $0.46 for the first quarter 2016 compared to $0.42 for the first quarter 2015. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $0.40 for the quarter. Analysts' estimates typically exclude special items.

First-quarter revenues of $1.56 billion increased 2% compared to the prior year, as 8% growth at U.S. Networks was partially offset by a 3% decline at International Networks, primarily due to currency effects, and lower revenues at Education and Other. Analysts expected revenue of $1.56 billion, for the quarter.