Time Warner Inc. Earnings Cheat Sheet: Booking a Profit Again

S&P 500 (NYSE:SPY) component Time Warner Inc. (NYSE:TWX) reported net income above Wall Street’s expectations for the most recent quarter. Time Warner, Inc. is a media and entertainment company with businesses such as: interactive services, filmed entertainment, cable systems, television networks and publishing.

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Time Warner Earnings Cheat Sheet for the Second Quarter

Results: Net income for the entertainment company rose to $638 million (59 cents per share) vs. $562 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 13.5% from the year earlier quarter.

Revenue: Rose 10.2% to $7.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TWX reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 56 cents per share. It beat the average revenue estimate of $6.81 billion.

Quoting Management: Chairman and Chief Executive Officer Jeff Bewkes said: “We had another successful quarter and remain on track to meet our financial goals for the year. Our continued investment in our content and brands is paying off. This quarter included such hits as the premiere of TNT’s Falling Skies, HBO’s breakout series Game of Thrones, People magazine’s and CNN’s royal wedding coverage and Warner Bros.’ The Hangover Part II. More recently, the final Harry Potter film has been a tremendous box office and critical success.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 9 cents in the third quarter of the last fiscal year.

Gross margin shrank 1.1 percentage points to 42.5%. The contraction appeared to be driven by increased costs, which rose 12.4% from the year earlier quarter while revenue rose 10.2%.

Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 5.7% to $6.68 billion while the figure rose 59.6% in the fourth quarter of the last fiscal year from the year earlier.

The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 9.9% to $653 million.

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).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

(Source: Xignite Financials)