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For the year-ago period, the company, owner of the Warner Bros. film studio, reported net income of $1.067 billion or $0.30 per share, compared to $1.086 billion or $0.29 per share in the previous year. Total revenues edged up to $11.706 billion from $11.676 billion. The AOL segment generated $1.012 billion and Cable segment contributed $4.340 billion to total revenues. Filmed Entertainment segment reported third-quarter 2008 revenues of $2.881 billion, while revenue from Networks division was $2.731 billion. Publishing revenues for the third quarter of 2008 was $1.118 billion.
In July, Time Warner posted lower profit in the second quarter, reflecting weak performance at the Publishing, AOL and Filmed Entertainment segments. The company's second-quarter net income attributable to Time Warner Inc. shareholders declined to $519 million or $0.43 per share from $792 million or $0.66 per share in the year-ago quarter. Quarterly revenues dropped to $6.81 billion from the previous year's revenue of $7.47 billion.
Time Warner said in July that it continues to expect its 2009 full-year adjusted earnings per share from continuing operations to be around flat with $1.98 per share reported in 2008. GAAP loss from continuing operations for fiscal 2009 is expected to be $5.40 per share. The company is likely to update this forecast today.
Late September, Credit Suisse upgraded Time Warner shares to "Outperform" from "Neutral" and increased its price target to $37 from $25. The firm upgraded the stock based on detailed analysis of the Cable Networks and Filmed entertainment units as well as key 2010 swing factors such as forex and restructuring charges. The brokerage raised its 2009 GAAP earnings per share estimate to $2.11 from $2.04, driven by higher film estimates, implying 6% year over year growth.
The brokerage added that Time Warner offers an attractive combination of offensive and defensive characteristics: above average growth, relatively low earnings risk, improving ROIC, and appealing valuation.
It was reported recently that the company might announce a restructuring charge of about $100 million, to be taken in the fourth quarter, for planned job cuts at Time Inc.
In May, the company said it plans to spin off unprofitable AOL by year-end, as it felt that it would be better for both companies to operate on their own.
Time Warner is likely to dwell on the fourth-quarter charge as well as the spin-off of AOL in its earnings release today.
Among others in the industry, Viacom Inc. (VIA, VIA-B) Monday reported a 15% rise in profit for the third quarter. The company reported third-quarter net earnings from continuing operations attributable to Viacom of $443 million, compared to $385 million in the year ago quarter. On a per share basis, earnings increased 18% to $0.73 from $0.62 last year. Revenues for the third quarter were $3.32 billion, down 3% from $3.41 billion in the comparable quarter last year, primarily reflecting lower home entertainment and advertising sales.
TWX closed Tuesday's regular trade at $30.16, up $0.01 or 0.03%, on 9.09 million shares. For the past year, the stock traded in the range of $17.81-$33.66.
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