Time Warner Hits Targets

Time Warner(TWX Quote - Cramer on TWX - Stock Picks) posted third-quarter results that met analysts' estimates, as strong growth in its cable and movie segments offset declines in its AOL division.

The media conglomerate's net income fell to $1.09 billion, or 30 cents a share, from $2.32 billion, or 57 cents a share, a year earlier, when results included gains from asset sales and tax-related items.

Earnings from continuing operations were 24 cents a share in the latest quarter, matching Thomson Financial's average analyst estimate. The company earned 19 cents a share on a comparable basis a year ago.

The New York-based company posted revenue of $11.68 billion, up from $10.75 billion a year earlier. Analysts anticipated revenue of $11.36 billion.

Time Warner saw the biggest revenue growth at its filmed entertainment division, where the top line jumped 33% to $3.18 billion. Operating income more than doubled to $268 million.

The segment, consisting of the Warner Bros. and New Line Cinema studios, was helped by strong theatrical performances from films like Harry Potter and the Order of the Phoenix, Ocean's 13 and Hairspray. DVD sales were boosted by the release of Warner Bros.' 300.

The company's cable division, Time Warner Cable(TWC Quote - Cramer on TWC - Stock Picks), saw revenue jump 25%. Revenue growth at the division was boosted by the acquisition of Adelphia Communications' assets, which occurred in the middle of the third quarter last year.

The network segment, consisting of Turner Broadcasting and HBO, recorded a 6% revenue rise to $2.56 billion. Time Warner said the rise was due to higher ancillary sales of HBO programming, with a modest increase in subscription revenue.

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