Investing

Earnings You Might Have Missed: Hertz, Zillow, Discovery, Dish Network

Paul Ausick

Published: May 8, 2018 8:40 am

Last Updated: January 11, 2020 11:57 pm

After markets closed on Monday, rental car company Hertz Global Holdings Inc. (NYSE: HTZ) and real-estate firm Zillow Group Inc. (NASDAQ: Z) reported quarterly results. Before markets opened Tuesday morning Discovery Inc. (NASDAQ: DISCA) and Dish Network Corp. (NASDAQ: DISH) also released earnings reports. Here’s a quick look at the reports and the reactions to them.

Hertz revenue was up 5% year over year to $1.43 billion in the first quarter, and the adjusted net loss totaled $1.58 per share, down slightly from a loss of $1.61 in the same quarter last year. Analysts had forecast an adjusted net loss of $1.26 per share and revenues of $1.97.

The big miss on both revenues and earnings hit the stock hard. Shares traded down almost 8% in Tuesday’s premarket session to $20.40, after closing at $22.16 Monday. The 52-week trading range is $8.52 to $27.27 and the 12-month price target on the stock is $21.29.

Zillow reported revenues of $299.88 million for the first quarter and adjusted diluted earnings per share of $0.07. The totals beat earnings per share estimates by a penny and revenues by nearly $2 million. The company’s second-quarter revenue guidance of $322 million to $327 million fell way short of the consensus estimate of $343 million.

That low guidance number is the main culprit in the share price drop of nearly 7.5%  to $51.74 in Tuesday’s premarket, after the stock gained 5.8% on Monday to close at $55.91. The stock’s 52-week range is $37.68 to $59.99, and the price target is $51.00.

Discovery reported first-quarter 2018 revenues of $1.17 billion, a year-over-year increase of 42%, based primarily on several transactions that became effective in the quarter. The consensus revenue estimate was $2.09 billion. On a pro forma basis, revenues rose 3%, and subscriber counts on the total portfolio fell by 5%. Discovery reported adjusted earnings per share of $0.16, compared with earnings of $0.37 per share in the same quarter last year and the analysts’ estimate of $0.44.

Shares traded down about 2.4% in Tuesday’s premarket, at $22.82 in a 52-week range of $15.99 to $27.92. The price target on the stock is $26.77.

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Dish Network reported first-quarter results that included revenues of $3.46 billion and diluted earnings per share of $0.70. Both were lower than in the same quarter last year but were in line with expectations. Pay-TV subscriptions fell by a net 94,000, with Dish TV subscribers dropping by 185,000 and Sling TV subscribers rising by about 91,000.

Dish shares traded down about 1.6% in Tuesday’s premarket to $33.35, after closing up about 1.5% Monday at $33.90. The stock’s 52-week range is $32.04 to $66.50, and the price target on the stock is all the way up at $64.22, based on 20 analyst calls.