Dallas, Texas 05/08/2014 (FINANCIALSTRENDS) – DIRECTV (NASDAQ:DTV) share price jumped close to 8 percent during trading on 7th May on the back of two positive developments. The first was the steady results that the company posted on 6th May, in which it reported an increase of 12000 net new active user acquisitions. This was offset by a dip in its net income for the quarter at $561 million, which translates into earnings of $1.09 per share in comparison to $1.2 EPS and $690 million revenue reported in 1Q13.
The company reported that its revenue for the quarter went up by 4 percent to reach $7.86 billion and the EPS in the quarter were sustained by nearly $895 million worth stock repurchase that had been accomplished by the firm in the reporting period. The biggest revenue contributor for the company was the Latin America market, which accounted for nearly 21 percent of its total revenue.
DIRECTV (NASDAQ:DTV) Chairman, Chief Executive Officer and President Michael D. White in his comments during the earnings call, spent considerable amount of time in reassuring the investors about their continued focus on its previously disclosed road map of “driving product innovation, in particular leveraging the cloud and mobility and, in addition to our traditional advantage satellite platform, improving the customer service experience, finding new sources of incremental revenues and tackling productivity initiatives enterprise-wide.” He went on to implore the investor community to not set store by the swirling rumours about an impending merger of the company with bigger firms by saying that, “We continue to feel we’re very much in a position of strength, and I’m confident in our future. And we’re fully committed to delivering our long-term growth profitability and cash generation goals for our shareholders”.
In spite of the clarification by the company CEO, speculation continued to gain that the company is in talks with AT&T Inc. (NYSE:T) for an eventual merger. These rumours led to the price of the company shares gain drastically.