Time Warner Beats on Both Top and Bottom Lines
Time Warner (NYS: TWX) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Time Warner beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Gross margins contracted, operating margins improved, net margins contracted.
Time Warner notched revenue of $6.98 billion. The 27 analysts polled by S&P Capital IQ predicted a top line of $6.82 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $6.68 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.67. The 30 earnings estimates compiled by S&P Capital IQ forecast $0.64 per share. GAAP EPS of $0.59 for Q1 were 1.7% lower than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.0%, 120 basis points worse than the prior-year quarter. Operating margin was 19.6%, 20 basis points better than the prior-year quarter. Net margin was 8.4%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.12 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $29.37 billion. The average EPS estimate is $3.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,064 members out of 1,250 rating the stock outperform, and 186 members rating it underperform. Among 325 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 286 give Time Warner a green thumbs-up, and 39 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Time Warner is outperform, with an average price target of $42.18.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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