Time Warner Inc (TWX) Beats Earnings Expectations

Time Warner Inc (TWX) Beats Earnings Expectations

Time Warner Inc (NYSE:TWX) released its fourth quarter earnings report before opening bell this morning, edging out expectations and also raising its dividend. The company reported record quarterly revenues of $8.6 billion—a 5% increase—and adjusted earnings per share of $1.17—a 1% increase from the same quarter a year ago. Diluted income per common share from continuing operations fell from $1.15 last year to $1.06 in the fourth quarter of 2013.

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Analysts had been expecting the company to report earnings of $1.15 per share on revenue of $8.36 billion for the December quarter.

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Breaking down Time Warner’s quarterly results

The entertainment company said growth at Warner Bros., Turner and Home Box Office was the main driver of the record fourth quarter revenue. Adjusted operating income did decline 2% to $1.9 billion because of declines at Turner, Time Inc. and Home Box Office. An increase at Warner Bros. partially offset this decline.

Operating income fell 9% to $1.8 billion, and adjusted operating income margin was 23%, while operating income margins were 22% for the fourth quarter.

Examining Time Warner’s full-year results

Time Warner Inc (NYSE:TWX) reported a 16% increase in adjusted earnings per share for the full year of 2013, bringing it to $3.77 per share for the year. That marks the fifth year in a row of double digit growth. The company also reported a 20% increase in free cash flow, which brought it up to $3.5 billion in 2013. In addition, its Turner, Home Box Office and Warner Bros. divisions all posted record adjusted operating income in 2013.

Time Warner raises dividend

Time Warner Inc (NYSE:TWX)’s board of directors also authorized a 10% increase in the company’s quarterly dividend, bringing it to 31.75 cents ($.3175) per share.

The board also authorized a new $5 billion share buyback program, which began Jan. 1 and replaced the amount that was left under its prior share repurchase authorization. Time Warner Inc (NYSE:TWX) repurchased 60.5 million shares for about $3.7 billion in all of 2013.

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