Time Warner Shares Fade, Wyndham Surges Upward as Investors Digest Earnings

Time Warner Inc. (NYSE:TWX) reported net income above Wall Street’s expectations for the fourth quarter. 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. 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.

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.”

Competitors to Watch: News Corp. (NASDAQ:NWS), Walt Disney Co. (NYSE:DIS), CBS Corporation (NYSE:CBS), Viacom, Inc. (VIA.B), Comcast Corporation (NASDAQ:CMCSA), Liberty Global Inc. (NASDAQ:LBTYA), Sony Corporation (NYSE:SNE), and Gannett Co., Inc.
(NYSE:GCI).

Wyndham Worldwide Corporation (NYSE:WYN) reported its results for the fourth quarter. Net income for the lodging company fell to $56 million (37 cents per share) vs. $78 million (43 cents per share) a year earlier. This is a decline of 28.2% from the year earlier quarter. Revenue rose 6.7% to $1 billion from the year earlier quarter. Wyndham Worldwide Corporation reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. It fell exactly in line with the average revenue estimate of $1 billion.

“2011 was another excellent year for our company,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “In an environment of ongoing economic uncertainty, our businesses continued to execute at a high level. As expected, we generated robust free cash flow and effectively deployed that cash flow. We remain well positioned for growth and that confidence is reflected in the 53% dividend increase authorized by our Board of Directors.”

Competitors to Watch: Marriott Intl., Inc. (NYSE:MAR), Royal Caribbean Cruises Ltd. (NYSE:RCL), Silverleaf Resorts, Inc. (NASDAQ:SVLF), Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), Bluegreen Corporation (NYSE:BXG), Choice Hotels Intl., Inc. (NYSE:CHH), InterContinental Hotels (NYSE:IHG) and Hyatt (NYSE:H).

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