These Top Media Companies are Catching a Bid After Earnings

AOL Inc. (NYSE:AOL) reported a drop to a loss in the third quarter driven by higher costs. Reported a loss of $2.6 million (2 cents per diluted share) in the quarter. The internet information provider had net income of $171.6 million or $1.60 per share in the year earlier quarter. Revenue fell 5.6% to $531.7 million from the year earlier quarter. AOL beat the mean analyst estimate of a loss of 7 cents per share. Analysts were expecting revenue of $524 million.

“AOL grew global advertising by 8%, driven by 28% and 15% growth in third party network and global display advertising revenue, respectively, substantially closing the gap to revenue and eventual profit growth,” said Tim Armstrong, Chairman and CEO. “We continue to build strong consumer experiences as we execute our strategy to build the premium branded media company for the internet. Our share repurchases underlie our belief in the value of AOL and our strategy.”

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO), Microsoft Corporation (NASDAQ:MSFT), IAC/InterActiveCorp (NASDAQ:IACI), Demand Media Inc (NYSE:DMD), News Corporation (NASDAQ:NWSA), The New York Times Company (NYSE:NYT), CBS Corporation (NYSE:CBS), and Baidu.com, Inc. (NASDAQ:BIDU).

Time Warner Inc. (NYSE:TWX) reported net income above Wall Street’s expectations for the third quarter. Net income for the entertainment company rose to $822 million (78 cents per share) vs. $522 million (46 cents per share) in the same quarter a year earlier. This marks a rise of 57.5% from the year earlier quarter. Revenue rose 10.8% to $7.07 billion from the year earlier quarter. TWX reported adjusted net income of 79 cents per share. By that measure, the company beat the mean estimate of 75 cents per share. Analysts were expecting revenue of $6.97 billion.

Chairman and Chief Executive Officer Jeff Bewkes said: “This was another terrific quarter for us, financially and strategically, putting us on pace to exceed our prior financial goals for the year. Our results demonstrate the success of Time Warner’s focus on investing in great content that audiences love and leading the evolution of how it’s delivered. Warner Bros. had a record-setting quarter, led by Harry Potter and the Deathly Hallows: Part two, which grossed $1.3 billion at the box office globally, ranking as the 3rd highest grossing film ever and capping an unprecedented franchise run. Warner Bros. also has had an excellent start in the new TV season with returning series such as The Big Bang Theory, Mike & Molly and Two and a Half Men, and new shows including two Broke Girls, Suburgatory and Person of Interest. We’re also pleased with the early success of The Big Bang Theory on TBS, illustrating how our content can create value across the company.”

Competitors to Watch: News Corporation (NASDAQ:NWSA), The Walt Disney Company (NYSE:DIS), CBS Corporation (NYSE:CBS), Comcast Corporation (NASDAQ:CMCSA), Time Warner Cable Inc. (NYSE:TWC), Sony Corporation (NYSE:SNE), Liberty Global Inc. (NASDAQ:LBTYA), Gannett Co., Inc. (NYSE:GCI), Yahoo! (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG), InterActive Corp (NASDAQ:IACI), Netflix (NASDAQ:NFLX), TiVo (NASDAQ:TIVO) and Liberty Media Corp (NASDAQ:LSTZA).

Charter Communications, Inc. (NASDAQ:CHTR) reported its results for the third quarter. Loss narrowed to $85 million (loss of 79 cents per diluted share) from $95 million (loss of 84 cents per share) in the same quarter a year earlier. Revenue rose 2.3% to $1.81 billion from the year earlier quarter. CHTR was about in line with expectations as the mean analyst estimate was breaking even. Analysts were expecting revenue of $1.8 billion.

“Charter delivered solid results in the third quarter, and I believe we have the right building blocks in place for long-term success. We are seeing the early benefits of delivering on our strategic priorities as evidenced by growth in Internet, acceleration in our commercial business and an improved customer relationship trend,” said Mike Lovett, President and Chief Executive Officer.

Competitors to Watch: Time Warner Inc. (NYSE:TWX), Liberty Global Inc. (NASDAQ:LBTYA), Comcast Corporation (NASDAQ:CMCSA), Mediacom Communications Corp. (NASDAQ:MCCC), Time Warner Cable Inc. (NYSE:TWC), Cablevision Systems Corp. (NYSE:CVC), Shaw Communications Inc. (NYSE:SJR), Netflix (NASDAQ:NFLX), TiVo (NASDAQ:TIVO), DirecTV (NASDAQ:DTV) and DISH Network Corp. (NASDAQ:DISH).

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