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Will These Numbers from Time Warner Be Good Enough for You?

By Seth Jayson – Updated Apr 10, 2017 at 1:37PM

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Checking expectations

Time Warner (NYSE: TWX) is expected to report Q1 earnings on May 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Time Warner's revenues will grow 2.2% and EPS will grow 11.9%.

The average estimate for revenue is $7.13 billion. On the bottom line, the average EPS estimate is $0.75.

Revenue details
Last quarter, Time Warner tallied revenue of $8.16 billion. GAAP reported sales were 0.4% lower than the prior-year quarter's $8.19 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.17. 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.

Recent performance
For the preceding quarter, gross margin was 46.4%, 360 basis points better than the prior-year quarter. Operating margin was 26.0%, 400 basis points better than the prior-year quarter. Net margin was 14.3%, 490 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $29.74 billion. The average EPS estimate is $3.68.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,063 members out of 1,252 rating the stock outperform, and 189 members rating it underperform. Among 356 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 321 give Time Warner a green thumbs-up, and 35 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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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. The Motley Fool has no position in any of the stocks mentioned. 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.

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