NEW YORK (TheStreet) -- Shares of Time Warner  (TWX)  were lower in late-morning trading on Tuesday ahead of the company's 2016 fiscal third-quarter results, due out before tomorrow's market open. 

Wall Street is expecting the New York City-based media company to report a year-over-year increase in earnings and revenue for the quarter. 

Analysts surveyed by FactSet are looking for adjusted earnings of $1.37 per share on revenue of $7.01 billion.

In 2015, Time Warner reported adjusted earnings of $1.25 per share and $6.56 billion in revenue during the third quarter. 

FBR Capital yesterday upgraded Time Warner's stock rating to "outperform" from "market perform," saying that it sees a "credible road" for the company to avoid FCC review of its proposed $85.4 billion mega-merger with AT&T (T).

The firm also hiked its price target to $104 from $97, according to TheFly.

FBR believes there's limited evidence of consumer harm in the merger, meaning it's "very possible" regulators won't challenge the deal. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

The team rates Time Warner as a Buy with a ratings score of B+. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, reasonable valuation levels, good cash flow from operations and growth in earnings per share. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.

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