Time Warner (TWX) Tops Q3 EPS Views; Updates Outlook

Time Warner (NYSE: TWX) reported Q3 EPS of $0.97, versus the analyst estimate of $0.94. Revenue for the quarter came in at $6.24 billion versus the consensus estimate of $6.19 billion.

Chairman and Chief Executive Officer Jeff Bewkes said: “We had another good quarter, featuring solid revenue growth as well as strong growth in Adjusted EPS. As we discussed at our Investor Event last month, we’ve refocused the Company over the past few years to aggressively pursue the huge global opportunities we see in video content. And once again, we are seeing the benefits of our increased investments in great content and storytelling. In the quarter, both Turner and HBO had double-digit increases in subscription revenues, reflecting the growing strength and appeal of their programming. HBO received 19 Primetime Emmy Awards, the most of any network for the 13th straight year, including five Emmys for newcomer True Detective. At Turner, TNT ranked as ad-supported cable’s #1 primetime network for the second consecutive quarter, TBS was the #2 ad-supported cable network in primetime among adults 18-49 and 25-54, and Adult Swim again shined as ad-supported cable’s #1 total day network among its key adult demos. Turner’s extension last month of its longstanding relationship with the NBA through the 2024-25 season is another great example of investing in distinctive programming that will serve us well for years to come. This fall, Warner Bros. is once again the number one producer for broadcast television, including a strong slate of new shows. Season-to-date, Gotham ranked as broadcast’s #2 new show among adults 18-49, while The Flash had the most-watched telecast ever on The CW. These shows are among five series featuring DC characters that will air this season. DC is also a key component of the ambitious film slate that Warner Bros. recently unveiled. Further demonstrating our continuing commitment to shareholder returns, so far this year we’ve returned over $5.7 billion to our shareholders in the form of share repurchases and dividends.”

The company updated its 2014 full-year business outlook. The Company now expects its 2014 full-year percentage growth rate in Adjusted Diluted Income per Common Share from Continuing Operations (“Adjusted EPS”) to be in the high teens off a 2013 Adjusted EPS base of $3.51(1). This outlook reflects an estimated net benefit of approximately $0.15 from the reversal of certain tax reserves offset in part by programming, restructuring and severance charges in the third and fourth quarters.

The outlook above does not include the impact of any future merger or unplanned restructuring and severance charges, the impact from future sales and acquisitions of operating assets or the impact of taxes on the above items that may occur from time to time due to management decisions and changing business circumstances. The Company is currently unable to forecast precisely the timing and/or magnitude of any such events and resulting impacts.

For earnings history and earnings-related data on Time Warner (TWX) click here.

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