“For the longest time, we have believed that public media companies provide earnings guidance at their own peril,” says Michael Nathanson, Senior Analyst at MoffettNathanson. “Given the unpredictability of ratings or box office performance, the market is lulled into a false sense of security when companies establish targets that serve as anchors for modeling purposes.”
This works in stable industries and in stable economic times, Nathanson notes. But, the
media industry is anything but stable right now. So, how does this impact Discovery Communications, in particular?