AOL Tops First-Quarter Estimate

AOL-Time Warner (AOL Quote) beat analysts' estimates for the first quarter, but took a major charge to write down some of its investments.

As expected, the company's online, cable and television networks divisions made the biggest contributions to the company's bottom line, while the company's music and movies operations were the weakest.

In the quarter, the media and entertainment conglomerate reported cash earnings per share of 23 cents, up from the 19 cents a share pro forma figure a year earlier and ahead of the consensus of 20 cents forecast by analysts surveyed by Thomson Financial/First Call. Revenue for the quarter was $9.1 billion, up from $8.3 billion a year ago. The merger of the former America Online and Time Warner was completed in January, so last year's first quarter was reported on a pro forma basis, or as if the companies were merged then.

Joining other companies that have written down the value of their stock portfolios in recent months, AOL-Time Warner took a $620 million noncash pretax charge against the value of publicly traded and privately held investments in its portfolio that suffered, as the company put it in its earnings announcement, "other-than-temporary declines." The company didn't immediately specify which investments were written down. ...