The 10-second takeaway
For the quarter ended March 31 (Q1), Time Warner missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Time Warner logged revenue of $6.94 billion. The 26 analysts polled by S&P Capital IQ looked for a top line of $7.15 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 $0.82. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. Non-GAAP EPS of $0.82 for Q1 were 22% higher than the prior-year quarter's $0.67 per share. GAAP EPS of $0.75 for Q1 were 27% higher than the prior-year quarter's $0.59 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 46.0%, 290 basis points better than the prior-year quarter. Operating margin was 21.7%, 190 basis points better than the prior-year quarter. Net margin was 10.4%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.11 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $29.74 billion. The average EPS estimate is $3.68.
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 354 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 320 give Time Warner a green thumbs-up, and 34 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 $60.54.
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