NEW YORK (TheStreet) -- Time Warner Inc. (TWX) stock is decreasing by 3.46% to $84.62 in early morning trading on Wednesday, despite the company reporting better than expected earnings results for the second quarter of 2015.
The company posted earnings of $1.25 per share on revenue of $7.3 billion for the three months ended June 30.
Analysts surveyed by Thomson Reuters had forecast for earnings of $1.03 per share on revenue of $6.9 billion.
"Our results were led by Turner and Warner Bros., and were achieved at a time when we're investing aggressively to position the company for continued growth, including the successful launch of HBO NOW, our standalone domestic streaming service," CEO Jeff Bewkes said in a statement.
Warner Bros. revenue grew 15% to $3.3 billion due to the video game releases of Batman: Arkham Knight and Mortal Kombat X, syndication of The Big Bang Theory and licensing fees of Seinfeld.
HBO revenue increased 1% to $1.4 billion as subscription revenues rose 4% making up for a 7% fall in content and other revenues.
Turner revenue was up 3% to $2.8 billion as a rise in content and subscription revenues offset a decline in advertising revenues.
Separately, TheStreet Ratings team rates TIME WARNER INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER INC (TWX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, notable return on equity, increase in stock price during the past year and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."