DirecTV Shares In Flux As Investors Weigh Impact Of Venezuela Currency Devaluation

  • Deadline TV
The stock opened the day up 3.3% after the satellite company announced strong Q4 results and a $4B share repurchase plan. But the stock price has dropped since then to -3.3 at mid-afternoon as investors grappled with the implications of Venezuela’s decision this week to devalue its currency by 32% — which will lead DirecTV to take a $160M charge this quarter. “We think investor focus remains on the Venezuelan devaluation and the prospect of further Argentinian devaluation to the company’s growth prospects in U.S. dollars,” says Isi Media’s Vijay Jayant. That’s too bad for the company because its Q4 numbers were strong. It generated net income of $948M, +31.1% vs the same quarter in 2011, on revenues of $8.05B, +7.9%. Revenues were slightly ahead of the Street’s forecast for $8.03B. Earnings per share, at $1.55, were way ahead of expectations for $1.13. In the U.S., revenues were +5% to $6.32B with operating income +6% to $1.02B.
See full article at Deadline TV »

Similar News