Barclays Maintains an 'Overweight' on Time Warner (TWX); Content Drives 3Q Beat; Advertising Light
Tweet
Share
E-mailGet Alerts TWX Hot Sheet
Price: $2.23 --0%
Rating Summary:
14 Buy, 24 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 24 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Barclays maintains an 'Overweight' on Time Warner (NYSE: TWX) price target of $38.00.
Barclays analyst says, "TWX reported solid 3Q results that were ahead of consensus on adjusted operating income and EPS, despite modestly lower ad revenue. Management increased FY'11 guidance to high-teens EPS growth, reflecting the positive impact of operational strength and opportunistic share repurchases. The 3Q beat was mainly driven by better-than-expected profits at the filmed entertainment segment, while the pace of the buyback accelerated in the quarter, highlighting management's commitment to best-in-class return of capital. Given a likely tailwind from additional TV licensing deals, and our expectation for further return of capital, either through an increased dividend or buyback authorization, we are maintaining our rating."
"Return of capital accelerates: TWX repurchased approximately $1.1B of stock during the 3Q, slightly ahead of $1B estimate. In FY'12, we are boosting our share repurchase estimate to $3B and as a result our FY'12 EPS estimate goes to $3.16 from $3.14."
For more ratings news on Time Warner click here and for the rating history of Time Warner click here.
Shares of Time Warner closed at $33.57 yesterday.
Barclays analyst says, "TWX reported solid 3Q results that were ahead of consensus on adjusted operating income and EPS, despite modestly lower ad revenue. Management increased FY'11 guidance to high-teens EPS growth, reflecting the positive impact of operational strength and opportunistic share repurchases. The 3Q beat was mainly driven by better-than-expected profits at the filmed entertainment segment, while the pace of the buyback accelerated in the quarter, highlighting management's commitment to best-in-class return of capital. Given a likely tailwind from additional TV licensing deals, and our expectation for further return of capital, either through an increased dividend or buyback authorization, we are maintaining our rating."
"Return of capital accelerates: TWX repurchased approximately $1.1B of stock during the 3Q, slightly ahead of $1B estimate. In FY'12, we are boosting our share repurchase estimate to $3B and as a result our FY'12 EPS estimate goes to $3.16 from $3.14."
For more ratings news on Time Warner click here and for the rating history of Time Warner click here.
Shares of Time Warner closed at $33.57 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- Benchmark Reiterates Buy Rating on Rank One Computing (ROC)
- DA Davidson Starts Comfort Systems USA (FIX) at Buy
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, Dividend, Stock BuybackSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
