Stock Update (NASDAQ:DISCA): Comcast accuses Discovery of 'extortionate ...
[Reuters] - Media company Discovery Communications Inc demanded business concessions as a condition for not opposing Comcast Corp's bid for Time Warner Cable Inc, Comcast told U.S. 'Such extortionate demands are patently improper,' Comcast said in a summary of the filing. Comcast Executive Vice President David Cohen said Discovery came to Comcast after the bid was announced and asked to negotiate a new distribution agreement. A source close to Discovery said the company approached Comcast before the merger announcement and negotiations did not move forward.Read more on this.
Discovery Communications, Inc. (DISCA), valued at $26.14B, began trading this morning at $38.38. Today's price range has been between $37.75 and $38.49 per share with a trailing 52-week range being $36.57 to $46.38. Discovery (DISCA) shares are currently priced at 20.55x this year's forecasted earnings, which makes them relatively expensive compared to the industry's 17.43x earnings multiple for the same period.
According to a consensus of 24 analysts, the earnings estimate of $0.43 per share would be $0.07 better than the year-ago quarter and a $0.45 sequential decrease. Investors should also note that the full-year EPS estimate of $1.86 is a $0.37 better when compared to the previous year's annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $1.61 Billion. If realized, that would be a 16.67% increase over the year-ago quarter. More recently, Argus Initiated DISCA at Buy (Sep 18, 2014). Previously, Barclays Initiated DISCA at to Overweight. The average price target for DISCA shares is $44.61, which is 16.23% above where the stock opened this morning. Summary (NASDAQ:DISCA) : Discovery Communications, Inc. operates as a media company worldwide. The company operates in three segments: U.S. Networks, International Networks, and Education. Its content spans genres, including science, exploration, survival, natural history, technology, docu-series, anthropology, heroes, paleontology, history, space, archeology, health and wellness, engineering, adventure, lifestyles, crime and investigation, civilizations, current events, and kids. The company owns and operates nine television networks in the United States, such as discovery channel, TLC, animal planet, investigation discovery, science channel, military channel, destination America, velocity, and discovery fit and health. It also owns interests in the oprah winfrey network, the hub network, 3net television networks, and pan-regional television networks; and free-to-air television networks, including DMAX, fatafeat, quest, real time, giallo, frisbee, focus, and K2. In addition, the company provides brand-aligned Websites, on-line streaming, mobile devices, video on demand (VOD), and broadband channels. Further, it offers curriculum-based product and services through subscriptions for K-12 schools to access online curriculum-based VOD tools, professional development services, digital textbooks, and student assessments, as well as publishes hardcopy curriculum-based content. As of December 31, 2013, it operated approximately 240 distribution feeds in 40 languages internationally. The company is headquartered in Silver Spring, Maryland. Tag Helper ~ Stock Code: DISCA | Common Company name: Discovery | Full Company name: Discovery Communications Inc (NASDAQ:DISCA) .
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