Earnings Preview: Time Warner

| About: Time Warner (TWX)

Time Warner (NYSE:TWX) is expected to report Q4 earnings before the open on Wednesday, February 8, with a conference call scheduled for 10:30 am ET.


Analysts are looking for a profit of 87c on revenue of $8.07B. The consensus range is 84c-89c for EPS, and revenue of $7.7B-$8.49B, according to First Call. In November, Time Warner updated its FY11 outlook and forecast full-year percentage growth rate in adjusted EPS to be in the high teens off a 2010 adjusted EPS base of $2.41 and consensus $2.82. During the quarter, Time Warner's EUR1B offer to buy Dutch television producer Endemol was rejected and its Warner Bros. unit signed a major film distribution agreement with Amazon's (NASDAQ:AMZN) LOVEFiLM. Time Inc also reached a digital subscription deal with Amazon and its HBO unit was expected to acquire a 15.7% stake in Quickflix. Coinstar's (NASDAQ:CSTR) Redbox ended its agreement to buy Time Warner's Warner Bros. titles directly from the studio, Bloomberg recently reported. After Warner Bros. demanded a 2-month wait time for DVDs, Redbox said it will obtain videos from third-party suppliers and make them available as soon as they go on sale. Analysts and investors will listen for comments from the company on pay TV subscriptions, as well as TV and movie sales and advertising trends. The Digital Entertainment Group says more consumers are getting their DVD's from rental kiosks, like Redbox, and subscription services like Netflix (NASDAQ:NFLX). In last year's quarter, Time Warner reported adjusted EPS of 67c on revenue of $7.81B.