Time Warner Stock Hits Multi-Year High as Analysts Cheer Latest Earnings

7:01 AM PST 08/07/2013 by Georg Szalai
Stan Honda/AFP/Getty Images

Credit Suisse analyst Michael Senno lauds the entertainment conglomerate's "super film results" and "strong results all around."

Time Warner's stock hit multi-year highs in early Wednesday trading as Wall Street cheered a better-than-expected earnings report from the Hollywood conglomerate.

As of 9:45 a.m. ET, the stock was up 2.8 percent at $65.87. Earlier in the trading session, the stock went as high as $66.01, setting a 52-week high that was also the stock's highest price in at least five years. A TW spokesman said Wednesday's gains boosted the stock to a 10-year high.

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The company, led by CEO Jeffrey Bewkes, before the market open posted higher second-quarter earnings and revenue that handily beat analysts' estimates.

Credit Suisse analyst Michael Senno lauded the latest financials in the title of his investor note as "Strong Results All Around."

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In the TV networks unit, advertising revenue growth of 11 percent came in above Senno's 9 percent estimate, which had already been above the Wall Street consensus of 7 percent. The analyst also lauded TW's "super film results," including better-than-expected adjusted operating profit.

Evercore Partners analyst Alan Gould also  lauded TW for having posted a "Strong Quarter in All Respects."

Revenue was $300 million-$400 million, or 4 percent-5 percent, higher than expected, "with each division outperforming," he noted. "Likewise, adjusted operating income beat expectations in each division."

Wells Fargo analyst Marci Ryvicker summarized TW's financials as a "nice beat...especially from the all-important networks segment."

And increased full-year earnings forecast "is also a positive, which should help drive the stock today," she said.

E-mail: Georg.Szalai@THR.com
Twitter: @georgszalai

 

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