The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Time Warner beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins dropped, operating margins improved, and net margins dropped.
Time Warner reported revenue of $8.19 billion. The 24 analysts polled by S&P Capital IQ anticipated a top line of $8.10 billion. GAAP sales were 4.9% higher than the prior-year quarter's $7.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.94. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.87 per share on the same basis. GAAP EPS of $0.76 for Q4 were 12% higher than the prior-year quarter's $0.68 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 42.2%, 30 basis points worse than the prior-year quarter. Operating margin was 21.1%, 130 basis points better than the prior-year quarter. Net margin was 9.4%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $6.93 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $29.36 billion. The average EPS estimate is $3.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,060 members out of 1,247 rating the stock outperform, and 187 members rating it underperform. Among 331 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 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 $40.57.
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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. 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.