The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Time Warner met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased.
Margins expanded across the board.
Time Warner chalked up revenue of $6.84 billion. The 27 analysts polled by S&P Capital IQ anticipated sales of $6.90 billion on the same basis. GAAP reported sales were 3.2% lower than the prior-year quarter's $7.07 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 $0.86. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.82 per share. GAAP EPS of $0.86 for Q3 were 10% higher than the prior-year quarter's $0.78 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 46.6%, 80 basis points better than the prior-year quarter. Operating margin was 23.6%, 80 basis points better than the prior-year quarter. Net margin was 12.2%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.34 billion. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $29.05 billion. The average EPS estimate is $3.20.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,055 members out of 1,244 rating the stock outperform, and 189 members rating it underperform. Among 333 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 296 give Time Warner a green thumbs-up, and 37 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 $44.91.
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