AOL, Inc. Time Warner Inc Smash Earnings Estimates

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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 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.

 

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

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