Time Warner (NYSE: TWX ) reported earnings on Aug. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Time Warner missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Time Warner reported revenue of $6.74 billion. The 27 analysts polled by S&P Capital IQ expected revenue of $6.96 billion on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $7.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.44 for Q2 were 25% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.7%, 50 basis points worse than the prior-year quarter. Operating margin was 18.0%, 120 basis points worse than the prior-year quarter. Net margin was 6.4%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.03 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $29.30 billion. The average EPS estimate is $3.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,062 members out of 1,248 rating the stock outperform, and 186 members rating it underperform. Among 313 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 give Time Warner a green thumbs-up, and 36 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 $42.69.
Can your retirement portfolio provide you with enough income to last? You'll need more than Time Warner. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.