Time Warner Inc. Earnings: Third Straight Quarter of Rising Profit

S&P 500 (NYSE:SPY) component Time Warner Inc. (NYSE:TWX) reported net income above Wall Street’s expectations for the fourth quarter. Time Warner is a media and entertainment company.

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Time Warner Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the entertainment company rose to $773 million (76 cents per share) vs. $769 million (68 cents per share) in the same quarter a year earlier. This marks a rise of 0.5% from the year earlier quarter.

Revenue: Rose 4.9% to $8.19 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Time Warner Inc. reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 87 cents per share. Analysts were expecting revenue of $8.07 billion.

Quoting Management: Chairman and Chief Executive Officer Jeff Bewkes said: “In 2011, Time Warner had an ambitious agenda and we accomplished what we set out to do and more. We increased revenues 8%, Adjusted Operating Income 9%, and Adjusted EPS by 20%, which means we more than doubled Adjusted EPS over the past three years. That performance is a testament to the quality of our content, the strength of our brands, our creative and managerial talent and our competitive position. We also continued to roll out Content Everywhere versions of our products across all our divisions, harnessing technology to give consumers more ways, places and platforms on which to enjoy our great content. While investing aggressively to drive our long-term growth, we also returned $5.6 billion to our shareholders through dividends and share repurchases.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 57.5% and in the second quarter, the figure rose 13.5%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the third quarter, by 4 cents in the second quarter, and by one cent in the first quarter.

Revenue has risen the past four quarters. Revenue increased 10.8% to $7.07 billion in the third quarter. The figure rose 10.2% in the second quarter from the year earlier and climbed 5.7% in the first quarter from the year-ago quarter.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 72 cents. The average estimate for the fiscal year is now $2.81 per share, down from $2.82 sixty days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com