Charting Time Warner's Latest Earnings Release

Seth Jayson, The Motley Fool
Updated

Time Warner (NYS: TWX) reported earnings on Aug. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Time Warner missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.


Margins contracted across the board.

Revenue details
Time Warner reported revenue of $6.74 billion. The 27 analysts polled by S&P Capital IQ expected revenue of $6.96 billion on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $7.03 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.59. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.44 for Q2 were 25% lower than the prior-year quarter's $0.59 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.7%, 50 basis points worse than the prior-year quarter. Operating margin was 18.0%, 120 basis points worse than the prior-year quarter. Net margin was 6.4%, 270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.03 billion. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $29.30 billion. The average EPS estimate is $3.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,062 members out of 1,248 rating the stock outperform, and 186 members rating it underperform. Among 313 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 give Time Warner a green thumbs-up, and 36 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 $42.69.

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The article Charting Time Warner's Latest Earnings Release originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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