As of this writing, shares of Time Warner were up 0.85% to $81.50 per share, while AOL shares were down 0.13% to $44.77 per share

AOL, Inc. Time Warner Inc Smash Earnings Estimates

AOL and Time Warner released their latest earnings reports before opening bell this morning. AOL posted adjusted earnings of 92 cents per share on $710.3 million in revenue. Analysts had been expecting earnings of 72 cents per share on $723 million in revenue. In the same quarter a year ago, AOL reported adjusted earnings of 72 cents per share.

Time Warner reported adjusted earnings of 98 cents per share on revenue of $7.53 billion for the fourth quarter. Analysts had been expecting earnings of 93 cents per share on $7.6 billion in revenue. In the same quarter a year ago, Time Warner reported adjusted earnings of $1.14 per share on $7.6 billion in revenue.

Key metrics from AOL’s earnings report

Diluted earnings per share were 72 cents for the fourth quarter. Ad revenue for the fourth quarter increased 8%, while revenue from subscriptions declined 5%. AOL saw revenue from Third Party Profits increase 16%, while AOL Properties display revenue fell 6% and search revenue from AOL Properties grew 6%. The company saw other revenue grow by 48%

AOL’s cost of revenues rose 32% year over year as traffic acquisition costs increased by $44 million.

Key metrics from Time Warner’s earnings report

For the fourth quarter, Time Warner saw a 1% decline in revenue due to falling revenue at Warner Bros. Adjusted earnings including restructuring and severance charges was $1.07 per share. Diluted earnings per share were 84 cents for the fourth quarter, compared to $1.01 per share in the previous quarter.

For the full year, Time Warner’s revenues rose 3% to $27.4 billion. Adjusted diluted earnings for the full year were $4.18, am 18% improvement year over year. Excluding a benefit from a tax adjustment and changes at Turner and restructuring charges, the company’s adjusted earnings would have been $4.05 per share. Diluted earnings for the full year were $4.41 per share.

Time Warner also provided guidance for the full year. Management expects to see adjusted diluted earnings of between $4.60 and $4.70 per share for 2015.