NEW YORK (TheStreet) -- Discovery Communications (DISCA) shares are down 8.3% to $32.71 on Tuesday after the Silver Spring, MD-based media and entertainment company released its third quarter earnings results before the opening bell today.
The company reported earnings of 46 cents per diluted share, 5 cents better than analysts were expecting for the period on revenue of $1.57 billion that was just short of analysts' $1.59 billion expectations.
The company also issued a downside guidance from its previous full year revenue estimates, stating that it expects to see revenue between $6.3 billion and $6.35 billion for the year, below its previous estimate of between $6.45 billion and $6.53 billion, and below analysts' expectations of $6.41 billion in revenue.
TheStreet Ratings team rates DISCOVERY COMMUNICATIONS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DISCOVERY COMMUNICATIONS INC (DISCA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: DISCA Ratings Report
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