Earnings Preview: Time Warner

May. 4.10 | About: Time Warner (TWX)

Time Warner (NYSE:TWX) is expected to report Q1 earnings before the market open on Wednesday, May 5 with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for a profit of 48c on revenue of $6.29B. The consensus range is 44c-53c for EPS, and revenue of $6.02B-$6.85B, according to First Call. In February, Time Warner forecast FY10 EPS growth in the mid-teens. In addition, the company raised its dividend by 13.3% and increased its stock buyback program to $3B. During the quarter, Time Warner signed an agreement with IMAX (NYSE:IMAX) to release up to 20 Warner Bros. films in IMAX's format. Reuters said the company is reportedly evaluating possible new structures for a bid for Metro-Goldwyn-Mayer which could include slightly higher cash, giving MGM a share in profits, or acting as an operating partner. In addition, Conan O'Brien said he will host a new late-night talk show on the TBS cable network which could help gain viewers going forward.

Analyst Views

Collins Stewart recently raised its estimates and target for Time Warner to reflect increased assumptions for the company's Film and Networks division. Cowen expects Time Warner's cable networks to benefit from the advertising recovery and noted that management continues to invest in high quality cable content.