Earnings Preview: Time Warner

Time Warner (TWX) is expected to report Q3 earnings before the market open on Wednesday, November 4 with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for a profit of 53c on revenue of $7.08B. The consensus range is 48c-61c for EPS, and revenue of $6.85B-$7.55B, according to First Call. In July the company reaffirmed its FY09 outlook for flat EPS compared to FY08's adjusted EPS of $1.98, and said it's on track to spin off AOL "around the end of the year." During the quarter the company signed a multi-year agreement with Nielsen and an online video distribution agreement with Google's (GOOG) YouTube.

Analyst Views

Credit Suisse recently upgraded the stock to Outperform from Neutral. The firm said the company offers an attractive combination of "offensive and defensive characteristics," including above average growth, relatively low earnings risk and improving ROIC. The firm, which said a large acquisition is "unlikely," believes potential catalysts for the stock include completing the AOL spin off in Q4, dividend increases and share repurchases. Reuters reported on October 30 that the company will take a charge in Q4 of around $100M for planned job cuts at its Time Inc unit. Analysts and investors will listen for comments on this charge, as well as on the spin off of AOL.