NEW YORK (TheStreet) -- Discovery Communications (DISCA) shares are climbing 0.81% to $33.70 in early market trading on Tuesday after the media and entertainment company released its first quarter earnings results before the opening bell today.
The Bethesda, MD-based company reported first quarter net income of $250 million, or 42 cents per share on an adjusted basis on revenue that rose 9% to $1.54 billion. Analysts on average were expecting the company to report earnings of 35 cents per share on revenue of $1.54 billion.
The company's strong quarter was led by 10% growth in its international media division and 6% growth in its U.S. media segment. For the full year the company expects year over year revenue to grow between a high single digit percentage and a low double digit percentage.
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 several positive factors, 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, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: DISCA Ratings Report