Nomura Securities Sneak Peak on Time Warner (TWX); What The Future Holds
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Price: $2.23 --0%
Rating Summary:
14 Buy, 24 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 24 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Time Warner (NYSE: TWX) price target of $42.00 (from $41.00)
Analyst, Michael Nathanson, said, "Despite yesterday’s $0.02 beat, we are maintaining 2012E EPS at $3.16. We continue to reiterate our below guidance view with estimated EPS growth of 9% Y/Y vs. the company’s “low double-digit” target. Slower 2Q advertising and weaker guidance for 3Q was overshadowed by management’s first time comments of double-digit domestic Turner affiliate fee growth expectations kicking in 2014. Given the raised bar, we are lifting our Turner affiliate fee growth by 250bps to 10.5%, which increases our CY14 EPS to $4.12. We do not want to look past weak industry-wide 3Q Cable Networks advertising growth and tough Film (and TV) comps. We are lowering our 3Q EPS by $0.08 to $0.82 to better reflect these trends. We are reducing our 2012 Networks revenue growth projection by 70bps to 4.2% Y/Y as we lower advertising growth. We still expect a tough year at the Film segment."
F12E EPS at $3.16; F13E EPS from $3.56 to $3.58.
For an analyst ratings summary and ratings history on Time Warner click here. For more ratings news on Time Warner click here.
Shares of Time Warner closed at $39.60 yesterday.
Analyst, Michael Nathanson, said, "Despite yesterday’s $0.02 beat, we are maintaining 2012E EPS at $3.16. We continue to reiterate our below guidance view with estimated EPS growth of 9% Y/Y vs. the company’s “low double-digit” target. Slower 2Q advertising and weaker guidance for 3Q was overshadowed by management’s first time comments of double-digit domestic Turner affiliate fee growth expectations kicking in 2014. Given the raised bar, we are lifting our Turner affiliate fee growth by 250bps to 10.5%, which increases our CY14 EPS to $4.12. We do not want to look past weak industry-wide 3Q Cable Networks advertising growth and tough Film (and TV) comps. We are lowering our 3Q EPS by $0.08 to $0.82 to better reflect these trends. We are reducing our 2012 Networks revenue growth projection by 70bps to 4.2% Y/Y as we lower advertising growth. We still expect a tough year at the Film segment."
F12E EPS at $3.16; F13E EPS from $3.56 to $3.58.
For an analyst ratings summary and ratings history on Time Warner click here. For more ratings news on Time Warner click here.
Shares of Time Warner closed at $39.60 yesterday.
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