DirecTV (DTV) disclosed a 5.6% dip in first-quarter profits amid currency charges on Tuesday, but the satellite TV company still managed to easily beat Wall Street’s expectations thanks to continued strength in Latin America.
Shares of DirecTV drove more than 3% higher in premarket trading on the stronger-than-expected results.
DirecTV said it earned $690 million, or $1.20 a share, last quarter, compared with a profit of $731 million, or $1.07 a share, a year earlier. Analysts had been calling for EPS of $1.07.
EPS grew despite the net income decline because the company's share count contracted amid $1.38 billion in first-quarter share buybacks. The results included a charge of $166 million tied to the devaluation of the Venezuelan currency earlier this year.
Revenue rose 8% to $7.58 billion, narrowly topping the Street’s view of $7.5 billion.
“Building on the momentum of one of the largest transitional years in our history, DirecTV delivered another strong quarter of operating and financial results," CEO Mike White said in a statement.
DirecTV reported 604,000 net subscriber additions in the first quarter, highlighted by a surge of 583,000 additions in Latin America. The gains give DirecTV more than 16 million total subscribers in Latin America, extending its lead as the largest pay-TV provider in the fast-growing region.
However, in the U.S. DirecTV logged 21,000 in net subscriber additions, narrowly missing forecasts from StreetAccount for a rise of 25,000, Reuters reported.
Still, Wall Street cheered the double beat, sending DirecTV 3.5% higher to $59.99 ahead of Tuesday’s opening bell. The rally puts DirecTV on track to build on its 2013 rally of nearly 16%.