DIRECTV Expected to Report Profit Gains for Fourth Quarter

Analysts predict that America’s largest satellite television provider, DIRECTV, will report profit gains for its fourth quarter. DIRECTV remains confident about its prospects for 2009, but revealed in December that it has discontinued hiring and postponed many capital projects. DIRECTV is improving promotions in order to further attract customers.

The satellite company plans to target customers with good credit histories, who value quality over cost. In addition to being apt to purchase more services, it is suggested that these customers are more loyal. Contrasting DIRECTV’s sales approach, DISH Network appeals to cost-conscious consumers.

According to analysts polled by Thomson Reuters, DIRECTV’s earnings are expected to be approximately $0.34 per share on revenue totaling $5.32 million for the fourth quarter. Analysts predict earnings of about $1.39 per share, and revenue totaling $19.7 billion for the year.

Doug Mitchelson, Deutsche Bank analyst, predicts that DIRECTV will report high fourth-quarter gains. He suggested that the company’s quantity of HD channels and efficient marketing campaign have contributed to the increased market share. Mitchelson estimates net customer additions will increase from $229,000 to $260,000 for the fourth quarter. “Impressive given the economic backdrop,” he said. Mitchelson predicts that DIRECTV will report $5.34 billion in revenue for the quarter and earnings before $1.26 billion in taxes and interest is liquidated.

In addition to designing an effective marketing campaign and increasing the quantity of HD channels, another possible reason for DIRECTV’s predicted success is its recent partnership with AT&T. This new agreement will mutually benefit the telecommunication powerhouses, as both are likely to receive increased traffic from the other’s market. Please note that the above mentioned predictions and estimations aren’t guaranteed. DIRECTV’s actual earnings will be announced on Tuesday.