In a report released today, Brian Wieser from Pivotal Research reiterated a Hold rating on Discovery Comms (NASDAQ: DISCA), with a price target of $26. The company’s shares opened today at $26.09.
Wieser noted:
“We continue to rate Discovery stock Hold. Discovery Communications reported tepid underlying growth trends for 2Q18 with company-wide revenues were up +1% with adjusted OIBDA up +5%, both on a pro forma basis. Results were below our expectations, although these figures were in-line with StreetAccount consensus. Pro forma domestic ad revenues and distribution revenues were each only +1% during the quarter. Digital offerings were called out as supporting growth, indicating worse results for traditional TV- related ad revenue. Distribution revenues were impacted by subscriber losses, which the company characterized as continuing to decline by -5% (including a -3% decline for fully distributed networks). US Networks’ domestic OIBDA grew by +1% on pro forma combined basis.”
According to TipRanks.com, Wieser is a 5-star analyst with an average return of 10.5% and a 74.1% success rate. Wieser covers the Services sector, focusing on stocks such as Interpublic Group of Companies, 21st Century Fox, and Nielsen Holdings.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Discovery Comms with a $29.50 average price target.
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Based on Discovery Comms’ latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $2.31 billion and GAAP net loss of $6 million. In comparison, last year the company earned revenue of $1.75 billion and had a net profit of $374 million.
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Discovery, Inc. is a media company, which engages in the provision of content across distribution platforms and digital distribution arrangements. It operates through the following segments: U.S. Networks, International Networks, and Education and Other.
