NEW YORK (TheStreet) -- Shares of Time Warner Inc. (TWX - Get Report) are up 0.30% to $87.62 in pre-market trade as the company's board took a major step to fight off Rupert Murdoch's unwanted takeover offer by eliminating a provision in its bylaws that let shareholders call special meetings, Bloomberg reports
The amendment removes a method investors could have used to pressure the company to sell. Time Warner recently rejected an unsolicited takeover offer of about $75 billion from billionaire Murdoch's 21st Century Foc Inc. (FOXA - Get Report).
The change would delay any action by shareholders to force a vote until June, when the company typically holds its annual meeting, sources told Bloomberg.
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- Powered by its strong earnings growth of 79.74% and other important driving factors, this stock has surged by 40.12% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TIME WARNER INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TIME WARNER INC increased its bottom line by earning $3.77 versus $3.00 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.77).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 71.3% when compared to the same quarter one year prior, rising from $754.00 million to $1,292.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.7%. Since the same quarter one year prior, revenues slightly increased by 8.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.68, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
- You can view the full analysis from the report here: TWX Ratings Report