DirecTV (NYSE: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.
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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%.