Eye-Catching Stock Buzz: Discovery Inc. (NASDAQ: DISCK)

On Friday, Shares of Discovery Inc. (NASDAQ: DISCK) showed the bearish trend with a lower momentum of -0.71% to $28.03. The company traded total volume of 1,361,565 shares as contrast to its average volume of 2.07M shares.

Discovery, Inc. (NASDAQ: DISCA, DISCB, DISCK) recently stated financial results for the full year and fourth quarter ended December 31, 2018.

Full Year Financial Results

Full year revenues increased 54% to $10.60B on a stated basis contrast with the prior year. Excluding the impact of foreign currency fluctuations and the Scripps Networks Interactive, Inc. (“Scripps Networks”), MotorTrend Group, LLC (“MTG”) and Oprah Winfrey Network (“OWN”) transactions (collectively, “the Transactions”), revenues increased 3%, as an 8% increase in International Networks and a 1% increase in U.S. Networks were partially offset by a noteworthy decrease in Education and Other revenues because of the sale of the education business on April 30, 2018. On a pro forma combined basis, excluding the impact of foreign currency fluctuations, total company revenues increased 3%, as International Networks increased 8% and U.S. Networks increased 2%, partially offset by a noteworthy decrease in Education and Other revenues because of the sale of the education business.

Full year Adjusted Operating Income Before Depreciation and Amortization (“Adjusted OIBDA”) increased 64% to $4.10B on a stated basis contrast with the prior year. Excluding the impact of the Transactions and foreign currency fluctuations, Adjusted OIBDA increased 1%, as U.S. Networks increased 3% and International Networks increased 2%, partially offset by a 16% decrease in Corporate and Other. On a pro forma combined basis, excluding the impact of foreign currency fluctuations, Adjusted OIBDA increased 8%, as U.S. Networks increased 8% and International Networks increased 7%.

Full year net income available to Discovery increased to $594.0M, contrast with a $337.0M loss in the prior year, because of higher operating results mainly because of the Transactions, partially offset by higher restructuring and other charges associated with the integration of Scripps Networks, higher tax expenses and higher interest expense. In addition, a non-cash goodwill impairment charge was recognized in the prior year. Diluted earnings per share increased to $0.86, mainly because of higher net income. Adjusted Earnings Per Diluted Share (“Adjusted EPS”), which excludes the impact of amortization of acquisition-related intangible assets, net of tax was $2.11. Adjusted EPS excluding $618.0M (or $0.89 per share) of after-tax restructuring and other charges was $3.00.

Free cash flow increased to $2.40B for the full year as cash flow from operations increased to $2.60B while capital expenditures of $147.0M were slightly higher contrast with the prior year mainly because of the integration of Scripps Networks. Full year cash flow from operations increased mainly as a result of higher operating results mainly because of the Transactions, partially offset by higher content and restructuring costs and higher interest expense.

Fourth Quarter 2018 Financial Results

Fourth quarter revenues of $2.80B increased 51% on a stated basis contrast with the prior year quarter. Excluding the impact of the Transactions and foreign currency fluctuations, revenues reduced 2% as a 1% increase in U.S. Networks and flat revenues in International Networks were more than offset by a noteworthy decrease in Education and Other revenues because of the sale of the education business. On a pro forma combined basis, excluding the impact of foreign currency fluctuations, total company fourth quarter revenues reduced 1%, as a 2% increase in U.S. Networks and flat revenues in International Networks were more than offset by a noteworthy decrease in Education and Other revenues because of the sale of the education business.

Fourth quarter Adjusted OIBDA increased 86% to $1.20B on a stated basis contrast with the prior year quarter. Excluding the impact of the Transactions and foreign currency fluctuations, Adjusted OIBDA increased 5% contrast with the prior year quarter, as International Networks increased 13% and U.S. Networks increased 6%, partially offset by a 29% decrease in corporate and other. On a pro forma combined basis, excluding the impact of foreign currency fluctuations, fourth quarter Adjusted OIBDA increased 16%, as U.S. Networks Adjusted OIBDA increased 17% and International Networks’ Adjusted OIBDA increased 15%.

Fourth quarter net income available to Discovery was $269.0M, contrast with a loss of $1.10B in the prior year quarter, because of higher operating results, mainly because of the integration of Scripps Networks partially offset by higher restructuring and other charges, higher tax expenses and higher interest expense. In addition, a non-cash goodwill impairment charge was recognized in the prior year’s quarter. Diluted earnings per share increased to $0.38 mainly because of higher DCI Net Income. Adjusted EPS, which excludes the impact of amortization of acquisition-related intangible assets, net of tax was $0.74. Adjusted EPS excluding $62.0M (or $0.08 per share) of after-tax restructuring and other charges was $0.82.

Free cash flow increased to $888.0M for the fourth quarter of 2018 as cash flow from operations increased to $929.0M while capital expenditures of $41.0M were slightly higher contrast with the prior year quarter mainly because of the integration of Scripps Networks. Fourth quarter cash flow from operations increased as a result of higher operating results because of the integration of Scripps Networks, partially offset by higher content and restructuring costs and higher interest expense.

The stock, as of recent close, has shown the weekly upbeat performance of 0.72% which was maintained at 21.45% in this year.

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