New York-based Time Warner said third-quarter adjusted earnings per share came in at $1.83, up 46% from a year ago and well ahead of the $1.37 estimated by analysts and collected by FactSet. Revenue for the three months ended in September, the company said, was $7.2 billion, a 9% year-on-year increase and again beating the consensus of $7.01 billion.
Time Warner now sees full-year adjusted EPS of between $5.73 to $5.83, up from the $5.35 to $5.45 range forecast during their second-quarter earnings release.
"The agreement we announced on Oct. 22 to be acquired by AT&T represents a great outcome for our shareholders and an excellent opportunity to drive long-term value well into the future," said CEO Jeff Bewkes. "Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies."
Operating income for the group was up 12% on an adjusted basis, the company said, rising to $2.1 billion in the quarter.
Late last month, AT&T proposed an $85 billion merger with Time Warner that many analysts saw as a delayed response to the 2011 tie-up between NBC and Action Alerts PLUS holding Comcast (CMCSA) . The AT&T/Time Warner deal still requires regulatory approval.
Time Warner shares have risen 16.45% in the past three months, against a 2.7% decline for the S&P Media Index, although nearly three-quarters of that gain is linked to the merger that was announced on Oct. 22.
Time Warner shares closed at $88.25 Tuesday in New York, down 0.83% on the session. The stock rose 2.4% in premarket trading.