CHICAGO - (Business Wire) Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The DIRECTV Group, Inc. (Nasdaq: DTV), AT&T (NYSE: T), Comcast Corporation (Nasdaq: CMCSA), Dish Network Corp. (Nasdaq: DISH) and Time Warner Cable Inc. (NYSE: TWC). Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Thursday’s Analyst Blog:
DIRECTV Falls Short of Estimates
The DIRECTV Group, Inc. (Nasdaq: DTV) reported revenues of $5.47 billion in the third quarter of 2009.
On a geographical basis, revenues from United States grew 9% to $4.7 billion due to solid subscriber and average revenue per unit (ARPU) growth. The company added 136,000 net subscribers to its customer base in the United States primarily due to the addition of AT&T (NYSE: T) as a marketing partner and record demand for company’s premium services. ARPU of $85.32 increased 2.1% as programming package price increases, as well as higher service fees for certain services, were partially offset by more competitive promotions for both new and existing customers.
The company’s business in Latin America also demonstrated solid performance, posting a 16% increase in revenues and expanding its customer base to 162,000. This was driven by continued subscriber growth throughout the region, which more than offset the unfavorable impact related to weaker currencies in countries such as Brazil and Argentina.
Operating margin came in at 12.5% compared to 13.2% in the year-ago quarter. Net income came in at $366 million, essentially flat with the year-ago quarter. Earnings per share (EPS) came in at 37 cents, falling short of the Zacks Consensus Estimate of 39 cents, but up from 33 cents reported in the year-ago quarter due to a 12% reduction in average shares outstanding. These were the result of share repurchases made over the last year.
During the quarter, the company repurchased shares worth $943 million. The company also issued $2 billion of additional debt after retiring $583 million of existing debt and paying down $30 million under DIRECTV’s senior secured credit facility. The remaining outstanding $327 million of senior notes was repurchased in October 2009.
The company generated cash $1.1 billion of cash from operations. Free cash flow came in at $643 million. As of September 30, 2009, the company has cash and equivalents of $3.3 billion and long-term debt of $7.1 billion.
The DIRECTV Group is the world’s leading provider of digital television entertainment services. The company provides digital television service to more than 18.4 million customers in the United States and over 6.1 million customers in Latin America. DirecTV has subsidiaries in Brazil, Mexico and other countries in Latin America. Primary competitors for the company include Comcast Corporation (Nasdaq: CMCSA), Dish Network Corp. (Nasdaq: DISH) and Time Warner Cable Inc. (NYSE: TWC).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5514.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5516
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks.com
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
