Time Warner Keeps Profit Forecast for Full Year


Time Warner Inc was down over 4.1% as the huge media company kept its profit forecast for the full year unchanged following an earnings report that topped estimates of analysts by a hefty margin during the last quarter.

Maintaining their guidance following earnings for the second quarter of 22 cents per share higher than the predictions suggests that the estimates for the second six months of the year might be too high to reach, said one Wall Street analysts. Shares were down 2.7% as of 10:00 a.m. Wednesday morning.

The release of Batman: Arkhaam Knight as a video game and the licensing of shows on television such as Seinfeld and The Big Bang Theory fueled Time Warner’s earnings growth during the last quarter.

The company also helped to offset a decline of 8% in operating income by HBO.

Profit excluding certain items was $1.25 said the company in an official statement. Analysts predicted that earnings would be $1.03 per share. For 2015, the media giant continues to expect its earnings to reach between $4.60 and $4.70 per share while analysts are calling for $4.66.

A Wall Street analyst said shares likely were also dragged down due to disappointing result at Walt Disney, Co. Disney fell by up to 8.8% after it posted its earnings that were lower than had been expected for the quarter and cutting its profit forecast for cable TV.

Jeff Bewkes the CEO at Time Warner has a strategy of creating original hit shows while acquiring rights to sports programming to demand fees that are higher for its television channels from distributors of pay-TV. Bewkes in the past few years has spun off some assets shrinking Time Warner to HBO, its Turner cable channels and Warner Bros the movie studio.

The company has been seeking other ways to sell content online and distribute its Turner channels on Sling TV the new service from Dish Network.

Time Warner Drops After Forecast for Earnings Remains Unchanged

Time Warner Inc was down over 4.1% as the huge media company kept its profit forecast for the full year unchanged following an earnings report that topped estimates of analysts by a hefty margin during the last quarter.

Maintaining their guidance following earnings for the second quarter of 22 cents per share higher than the predictions suggests that the estimates for the second six months of the year might be too high to reach, said one Wall Street analysts. Shares were down 2.7% as of 10:00 a.m. Wednesday morning.

The release of Batman: Arkhaam Knight as a video game and the licensing of shows on television such as Seinfeld and The Big Bang Theory fueled Time Warner’s earnings growth during the last quarter.

The company also helped to offset a decline of 8% in operating income by HBO.

Profit excluding certain items was $1.25 said the company in an official statement. Analysts predicted that earnings would be $1.03 per share. For 2015, the media giant continues to expect its earnings to reach between $4.60 and $4.70 per share while analysts are calling for $4.66.

A Wall Street analyst said shares likely were also dragged down due to disappointing result at Walt Disney, Co. Disney fell by up to 8.8% after it posted its earnings that were lower than had been expected for the quarter and cutting its profit forecast for cable TV.

Jeff Bewkes the CEO at Time Warner has a strategy of creating original hit shows while acquiring rights to sports programming to demand fees that are higher for its television channels from distributors of pay-TV. Bewkes in the past few years has spun off some assets shrinking Time Warner to HBO, its Turner cable channels and Warner Bros the movie studio.

The company has been seeking other ways to sell content online and distribute its Turner channels on Sling TV the new service from Dish Network.

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