Wednesday, February 11, 2015

TWX beats EPS, missed Revenue

Time Warner Inc. released 4th quarter 2014 earnings before market open on Wednesday. Adjusted earnings beat consensus by four cents due to continued strength in their Turner Broadcasting and HBO segments.

The Warner Bro. segment fell 5% weighing down total revenue which decreased 1% YoY.  This segment fall is predominantly due to decrease in revenue, but there were also some one-time restructuring  charges in addition to currency exchange rate losses.

The Warner Bros. segment makes up just less than half of total revenues. However, the company seems to be well diversified in its other major segment of Network stations that have seen enough increase in revenue to offset the declining Warner Bros. segment.

Despite the company beating EPS expectations, they missed on revenue expectations. Time Warner Inc. posted revenue of $7.53 billion in the fourth quarter of 2014, while analysts expected revenue of $7.54 billion.

EPS guidance was changed to 4.60 - 4.70 dollars per share for fiscal year 2015, currently consensus is around 4.66 dollars per share. Additionally the company raised their quarterly dividend by 10 cents to 35 cents.

Shares closed up 0.25% Wednesday.

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