The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Time Warner met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Margins increased across the board.
Time Warner tallied revenue of $8.16 billion. The 25 analysts polled by S&P Capital IQ hoped for revenue of $8.22 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.17. The 29 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. GAAP EPS of $1.21 for Q4 were 57% higher than the prior-year quarter's $0.77 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 45.7%, 290 basis points better than the prior-year quarter. Operating margin was 24.7%, 270 basis points better than the prior-year quarter. Net margin was 14.3%, 490 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.19 billion. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $29.94 billion. The average EPS estimate is $3.67.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,055 members out of 1,247 rating the stock outperform, and 192 members rating it underperform. Among 341 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 305 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 $50.14.
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