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

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.

STORY: Time Warner CEO Jeff Bewkes Says CNN's Jeff Zucker Is 'Working Out Great'

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."

STORY: Lionsgate Stock Hits New All-Time High on NYSE

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