DIRECTV's Quarterly Report Pushes Stock
Higher
02/10/2006
While DIRECTV's stock wasn't our biggest
mover this week (Denny's Corp. holds that distinction with
a 17.8% gain over the past five trading days), DIRECTV's stock
did jump 9.3% this week. The nation's largest satellite TV
provider released their fourth quarter results on Wednesday.
Profits came in higher than Wall Street analysts had expected,
causing DIRECTV's stock price to jump.
From the company's fourth quarter report
and earnings conference call:
- 200,000 net subscribers were added during
the quarter
- an additional 1,000,000 net subscribers
are expected for 2006
- annual sales rose to $12.2 billion, an
increase of 25%
- customer turnover decreased
- costs to attract and retain subscribers
fell 4%
- annual profits rose to $335.9 million
- revenue per customer increased 5% to
$75.53
The company also announced a plan to buy
back up to $3 billion of DIRECTV stock. That's equivalent
to almost 15% of the company's current market cap. Finally,
DIRECTV is expected to add broadband Internet access to its
list of services.
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