Time Warner Earnings: Everything You Must Know Now

Time Warner Inc. (NYSE:TWX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Time Warner Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.39% to $0.82 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Decreased 0.57% to $6.94 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Time Warner Inc. reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.74. It missed the average revenue estimate of $7.12 billion.

Quoting Management: Chairman and Chief Executive Officer Jeff Bewkes said: “We’re off to a strong start in 2013, making us even more confident in our full-year outlook. Our Adjusted Operating Income in the first quarter increased 7% to $1.4 billion, up 10% excluding Publishing, and Adjusted EPS climbed 22%. These results reflect the ongoing strength of our content, particularly in television. At Turner, the NCAA Division I Men’s Basketball tournament was the most watched March Madness in almost two decades. And we’re seeing good momentum across most of Turner’s networks, including TBS, which was the #1 ad-supported cable network in primetime across adults 18-34 and 18-49 during the quarter. At Warner Bros., we have had another very strong TV season, including having four of the top six comedies on TV and both of the breakout new dramas of this season, Revolution and The Following. And HBO continues to go from strength to strength, powered by hits like Game of Thrones, which is on track this season to become the most-watched series on HBO since The Sopranos.”

Key Stats (on next page)…

Revenue decreased 15% from $8.16 billion in the previous quarter. EPS decreased 29.91% from $1.17 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.74 to a profit $0.75. For the current year, the average estimate has moved up from a profit of $3.65 to a profit of $3.68 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)