- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TIME WARNER INC has improved earnings per share by 20.4% 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 $2.25 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($2.78 versus $2.25).
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.0%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $43.00 million or 34.37% when compared to the same quarter last year. In addition, TIME WARNER INC has also modestly surpassed the industry average cash flow growth rate of 33.22%.
- 44.80% is the gross profit margin for TIME WARNER INC which we consider to be strong. Regardless of TWX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TWX's net profit margin of 9.10% compares favorably to the industry average.
NEW YORK ( TheStreet) -- Time Warner Inc (NYSE: TWX) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include: