Time Warner (TWX) Stock Up Ahead of Earnings Results

Time Warner (TWX) will release its 2015 third quarter earnings results before the market open on Wednesday.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of Time Warner (TWX) are higher by 0.26% to $76.76 at the start of trading on Tuesday morning, as the company prepares to release its 2015 third quarter earnings results before the market open on Wednesday.

Analysts are expecting the media and entertainment company to report a year over year decline in earnings per share, but a rise in revenue for the most recent quarter.

Time Warner has been forecast to report earnings of $1.09 per share on revenue of $6.51 billion for the three month period ending in September.

The company's adjusted earnings came in at $1.22 per share for the 2014 third quarter, while revenue was $6.2 billion.

Time Warner is a New York City-based media company operating in three segments including Turner, Home Box Office and Warner Bros. The company offers both cable and premium TV services as well as produces and distributes feature films.

Separately, TheStreet Ratings team rates TIME WARNER INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate TIME WARNER INC (TWX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TWX's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 8.2%. 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 0.99, 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 1.21, which illustrates the ability to avoid short-term cash problems.
  • TIME WARNER INC has improved earnings per share by 23.4% 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 $4.39 versus $3.56 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $4.39).
  • 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 14.2% when compared to the same quarter one year prior, going from $850.00 million to $971.00 million.
  • You can view the full analysis from the report here: TWX
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