This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Time Warner Beats, Shares Rise

Updated from 8:13 a.m. EST.

NEW YORK ( TheStreet) -- Time Warner's (TWX) shares were gaining almost 5% Wednesday after the media company's fourth-quarter earnings beat analysts' estimates on strong overall revenue gains.

For the quarter ended Dec. 31, the company saw earnings rise 21.9% to $769 million, or 68 cents a share, compared with earnings of $631 million, or 52 cents a share, in the same period a year earlier.

Excluding items, fourth-quarter earnings were 67 cents per share. Analysts were expecting profit of 62 cents.

Revenue increased 8.3% to $7.81 billion from $7.21 billion, reflecting growth at the company's networks and filmed entertainment segments.

Total revenue at its Time publishing unit dropped 2%, while a 3% gain in its advertising revenue was more than offset by a 2% drop in subscription revenue.

"Time Warner had an outstanding year in 2010. We posted our strongest revenue growth in years, grew adjusted operating income 17% and increased adjusted EPS by over 30%," said Chairman and CEO Jeff Bewkes, in a company statement.

For the 2010 fiscal year, earnings rose 4.1% to $2.6 billion, or $2.25 a share, from earnings of $2.5 billion, or $2.07 a share, in the same period a year earlier.

Revenue rose 5.9% to $26.89 billion from $25.39 on strong results at the networks and filmed entertainment segments. This gain represents the company's highest revenue growth rate since 2004. Operating income increased 21% to $5.4 billion while adjusted operating income rose 17% to $5.4 billion, the highest level in the company's history.

Total advertising revenue grew 10%, driven by a 14% increase in ad revenue at Turner and a 3% gain at Time.

Analyst Alan Gould with Evercore Partners believes the standout figure from the quarterly report was the 21% growth in cable network advertising.

"This is an indication of how strong the upfront was for Time Warner, which should flow through for the next couple of quarters, and the strength of the overall cable network advertising environment," Gould said in a research note to investors on Wednesday.

He predicts the overall strength of the industry will be reflected positively through other cable network companies such as Viacom (VIA - Get Report), Discovery (DISCA - Get Report), Scripps (SNI - Get Report) and News Corp. (NWSA - Get Report).

He gives Time Warner a buy rating and has a $38 price target on the stock.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DISCA $27.43 1.60%
NWSA $12.24 0.08%
SNI $61.99 1.90%
VIA $45.26 1.60%
AAPL $94.99 -0.20%


Chart of I:DJI
DOW 17,693.45 -57.46 -0.32%
S&P 500 2,052.60 -10.77 -0.52%
NASDAQ 4,739.23 -23.9940 -0.50%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs