Time Warner Earnings: Investors Liked These Numbers

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Time Warner Inc. (NYSE:TWX) from reporting a profit boost in the third quarter. Time Warner is a media and entertainment company.

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Time Warner Inc. Earnings Cheat Sheet

Results: Net income for the media conglomerate rose to $838 million (86 cents per share) vs. $822 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 1.9% from the year-earlier quarter.

Revenue: Fell 3.2% to $6.84 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Time Warner Inc. beat the mean analyst estimate of 82 cents per share. Analysts were expecting revenue of $6.81 billion.

Quoting Management: Chairman and Chief Executive Officer Jeff Bewkes said: “With one quarter left to go in 2012, we’re on track for another very strong year. The highlight this quarter was the strength of our Networks businesses, which delivered double digit Adjusted Operating Income growth. This performance illustrates that our investments in content and technology are continuing to pay off. We’re experiencing good momentum across most of Turner’s networks. TBS, for instance, was up 35% in primetime for adults 18-49 this quarter and is now the #1 network on cable this year for adults 18-34. At HBO, the unmatched volume of its quality original programming was underscored by the 23 Primetime Emmy awards HBO received this year–more than any other network for the eleventh consecutive year. With compelling content, technological innovations like HBO GO and support from our affiliates, the subscriber trends at HBO today are the best they’ve been in years.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 3 cents in the first quarter, and by 7 cents in the fourth quarter of the last fiscal year.

Last quarter’s profit increase breaks a two-quarter streak of year-over-year profit decreases. In the second quarter, net income fell 32.6% while the figure dropped in the first quarter.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 4.1% to $6.74 billion from the year-earlier quarter.

Looking Forward: The average estimate for the fourth quarter is steady at $1.13 a share. For the fiscal year, the average estimate has moved up from $3.20 a share to $3.21 over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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