Peter Kafka

Recent Posts by Peter Kafka

Time Warner's Q2 Gives Wall Street What It Wants

Quick summary of Jeff Bewkes’s Q2: a pleasant surprise. Time Warner’s (TWX) revenues of $6.4 billion and earnings of $0.50 a share were both higher than Wall Street’s expectations of $6.2 billion and $0.45, respectively. Conference call is at 10:30 am ET, and I’ll check back in then, but for now here’s J.P. Morgan (JPM) analyst Imran Khan’s take:

  • TWX reported revenue of $6.38B, vs. our estimate of $6.06B, up 7.7% Y/Y. Adjusted operating income of $1.20B was $90M better than our estimate. We note that the beat came from cable networks, which we see as higher quality than film.
  • Filmed Entertainment revenue was $2.52B, ahead of our estimate of $2.26B, up 7.8% Y/Y. Segment operating income was $173M, while we estimated $171M.
  • Cable Networks revenue was $3.17B, and Adjusted Operating Income was $981M, while we estimated at $931M.
  • Publishing revenue came in at $919M, in line with our estimate, up 0.4% Y/Y. Segment Adjusted Operating Income was $153M, vs. our est. of $142M.
  • Reported diluted EPS ex-items of $0.50, vs. our estimate of $0.44.
  • On the call we will be looking for commentary on the advertising market recovery and cable networks cost trends as well as for an update on capital allocation.

Latest Video

View all videos »

Search »

Another gadget you don’t really need. Will not work once you get it home. New model out in 4 weeks. Battery life is too short to be of any use.

— From the fact sheet for a fake product entitled Useless Plasticbox 1.2 (an actual empty plastic box) placed in L.A.-area Best Buy stores by an artist called Plastic Jesus