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Discovery (DISCA) Q4 Earnings Miss Estimates, Revenues Up Y/Y

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Discovery DISCA reported fourth-quarter 2021 earnings of 8 cents per share, which declined 81% year over year.

Revenues increased 10.4% year over year to $3.187 billion, which missed the Zacks Consensus Estimate by 1.8%.

The consensus mark for earnings was pegged at 89 cents per share.

Discovery, Inc. Price, Consensus and EPS Surprise

Discovery, Inc. Price, Consensus and EPS Surprise
Discovery, Inc. Price, Consensus and EPS Surprise

Discovery, Inc. price-consensus-eps-surprise-chart | Discovery, Inc. Quote

Top-Line Details

Advertising revenues increased 6.4% year over year to $1.71 billion. Distribution revenues increased 10.9% year over year to $1.35 billion. Other revenues were $130 million compared with $65 million reported in the year-ago quarter.

U.S. Networks (63.5% of revenues) revenues increased 13.9% on a year-over-year basis to $2.03 billion. Advertising revenues increased 4.8%, while distribution revenues rose 17.3%.

Subscribers of Discovery’s fully-distributed networks were 4% lower on a year-over-year basis. Total portfolio subscribers declined 5% year over year.

International Networks revenues (36.5% of revenues) increased 5.3% year over year to $1.16 billion. Advertising revenues and distribution revenues were up 9.6% and 2%, respectively.

Discovery ended the fourth quarter with 22 million paying direct-to-consumer subscribers.

Operating Details

In the fourth quarter, selling, general and administrative (SG&A) expenses surged 32.1% from the year-ago quarter’s levels to $1.069 billion.

Adjusted operating income before depreciation & amortization (“OIBDA”) declined 13.5% from the year-ago quarter’s levels to $1.137 billion.

U.S. Networks adjusted OIBDA increased 16.7% from the year-ago quarter’s levels to $1.104 billion. However, International Networks’ adjusted OIBDA rose 5.6% year over year to $207 million.

GAAP operating income increased 4.1% year over year to $508 million.

Balance Sheet

As of Dec 31, 2021, cash & cash equivalents were $3.91 billion compared with $3.12 billion as of Sep 30, 2021.

Zacks Rank & Stocks to Consider

Currently, Discovery carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Consumer Discretionary sector are PlayAGS AGS, Accel Entertainment ACEL and Gildan Activewear GIL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PlayAGS is set to announce fourth-quarter 2021 results on Mar 10.

AGS is up 0.7% in the past year against the Zacks Gaming industry’s decline of 34.4% and the Consumer Discretionary sector’s fall of 24.5% in the past year.

Accel Entertainment is set to announce fourth-quarter 2021 results on Mar 15.

ACEL is up 21.9% in the past year against the Zacks Gaming industry’s decline of 34.4% and the Consumer Discretionary sector’s fall of 24.5%.

Gildan Activewear is set to announce fourth-quarter 2021 results on Feb 23.

GIL is up 27.3% in the past year against the Zacks Textile – Apparel industry’s decline of 11% and the Consumer Discretionary sector’s fall of 24.4%.


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