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Time Warner Third Quarter Earnings Preview
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On Wednesday, November 7, 2012, Time Warner (NYSE:TWX) is expected to release its third quarter earnings.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 5 Tricks Companies Use During Earnings Season
What to Expect: Analysts are expecting Time Warner to report earnings of 82 cents per share, up 3.8% from a year ago, when the company reported earnings of 79 cents per share.
The consensus estimate is down from three months ago when it was 83 cents. For the fiscal year, analysts are expecting earnings of $3.21 per share.
Time Warner's expected revenue of $6.9 billion for the quarter is below last year's reported figure of $7.07 billion by 2.4%. Revenue of $29.05 billion is expected for the fiscal year.
Company Performance: Revenue fell year-over-year in the second quarter to end a three-quarter growth streak. It fell 4.1% in the second quarter after rising 4.4%in the first quarter, 4.9% in the fourth quarter of the last fiscal year and 10.8% in the third quarter of the last fiscal year.
P/E ratio for TWX is 16.9. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Over the past quarter, the stock price has risen to $43.80 from $41.61 on August 6, 2012. Time Warner's best recent streak was when its price gained $2.29 per share between September 4, 2012 and September 7, 2012.
The Competition: Time Warner is a media and entertainment company. The majority of analysts (16 of 26) give Time Warner a buy rating. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the broadcasting and cable tv industry is Comcast (CMCSA). Analysts are less optimistic about Time Warner than about Comcast. Eighteen out of 23 analysts rate the latter a buy.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 5 Tricks Companies Use During Earnings Season
What to Expect: Analysts are expecting Time Warner to report earnings of 82 cents per share, up 3.8% from a year ago, when the company reported earnings of 79 cents per share.
The consensus estimate is down from three months ago when it was 83 cents. For the fiscal year, analysts are expecting earnings of $3.21 per share.
Time Warner's expected revenue of $6.9 billion for the quarter is below last year's reported figure of $7.07 billion by 2.4%. Revenue of $29.05 billion is expected for the fiscal year.
Company Performance: Revenue fell year-over-year in the second quarter to end a three-quarter growth streak. It fell 4.1% in the second quarter after rising 4.4%in the first quarter, 4.9% in the fourth quarter of the last fiscal year and 10.8% in the third quarter of the last fiscal year.
Over the past quarter, the stock price has risen to $43.80 from $41.61 on August 6, 2012. Time Warner's best recent streak was when its price gained $2.29 per share between September 4, 2012 and September 7, 2012.
The Competition: Time Warner is a media and entertainment company. The majority of analysts (16 of 26) give Time Warner a buy rating. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the broadcasting and cable tv industry is Comcast (CMCSA). Analysts are less optimistic about Time Warner than about Comcast. Eighteen out of 23 analysts rate the latter a buy.
by
Investopedia Staff
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