Can Time Warner Beat These Numbers? (TWX)

Can Time Warner Beat These Numbers?

Time Warner (NYSE: TWX ) is expected to report Q2 earnings on Tuesday. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Time Warner's revenues will contract -0.8% and EPS will wither 1.7%.

The average estimate for revenue is $6.97 billion. On the bottom line, the average EPS estimate is $0.59.

Revenue details
Last quarter, Time Warner chalked up revenue of $6.98 billion. GAAP reported sales were 4.4% higher than the prior-year quarter's $6.68 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.67. GAAP EPS of $0.59 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 43%, 120 basis points worse than the prior-year quarter. Operating margin was 19.6%, 20 basis points better than the prior-year quarter. Net margin was 8.4%, 140 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $29.40 billion. The average EPS estimate is $3.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,062 members rating the stock outperform and 186 members rating it underperform. Among 316 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 give Time Warner a green thumbs-up, and 39 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Time Warner is outperform, with an average price target of $42.18.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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