On Feb. 1, Time Warner (NYSE:TWX) released Q4 2005 earnings for the period ended Dec. 31.

  • In 2005, the company paid out $3 billion as part of its $12.5 billion stock repurchase program, which is scheduled to run until August 2007.
  • AOL's sales were down by 8% during the quarter.
  • Time Warner's studios combined for the No. 1 position in global box office for the fifth consecutive year.

(Figures in millions, except per-share data)
Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

% Change

Sales

$11,880

$11,887

$11,109

+7.0%

Net Profit

--

$1,366

$1,127

+21.2%

EPS

$ 0.22

$0.29

$0.24

+20.8%

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2005

Q4 2004

Change

Gross Margin

43.03%

41.58%

+1.45%

Op. Margin

18.51%

14.43%

+4.08%

Net Margin

11.49%

10.14%

+1.35%



Margins are the earnings engine. See how they work..

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash+ ST Invest.

$4,220

$6,139

-31.3%

Inventory

$1,806

$1,737

+4.0%

Accounts Rec.

$6,411

$5,512

+16.3%

Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

$20,238

$20,703

-2.2%

Accounts Pay.

$1,380

$1,339

+3.1%

Related Companies:

  • Yahoo (NASDAQ:YHOO)
  • Microsoft (NASDAQ:MSFT)
  • Google (NYSE:GOOG)
  • CBS (NYSE:CBS)
  • Disney (NYSE:DIS)
  • AT&T (NYSE:T)

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Time Warner is a Motley Fool Stock Advisor selection. Microsoft is a Motley Fool Inside Value recommendation. Try a free trial subscription to the newsletter that best suits your investing style.

At the time of publication, John Reeves did not own any positions in the companies mentioned. Fool rules are here.