Directv’s stock is set to drop 1 percent in the second quarter after the company reported disappointing fourth-quarter results that were largely blamed on subscriber declines.
DVR subscription revenues fell 5.4% in the quarter, to $7.1 billion, according to the company’s fourth-year fiscal results released Friday.
Analysts polled by FactSet expected earnings per share of $1.09.
That’s below analysts’ average price target of $2.07 per share.
The company said it had made “significant progress” on its plans to turn cable into a video-on-demand service.
But analysts believe the company will be unable to achieve the level of subscriber growth it promised to achieve.
DTV subscriber growth is expected to fall by 5.1 million subscribers to 2.8 million by the end of the year.
Direc TV said it has also completed a $10 billion merger with Direc Communications Inc., which also owns the satellite television and phone companies Dish Network and Verizon Communications.
That merger is expected in the third quarter.
Shares of Direc were down 0.4 percent in after-hours trading on the New York Stock Exchange.
The Dow Jones Industrial Average fell 1.1 points, or 0.8%, to 23,096.97, the S&P 500 fell 1%, to 2,749.10, and the Nasdaq Composite dropped 0.2%, to 6,742.82.
Direlts shares closed down 1.2 percent at $1,259.80.
Dire’s stock has dropped 1.4 percentage points in 2017, or 3.2%.