Stocks

Time Warner Inc, Allergan plc Shares Rise After Earnings Releases

Time Warner and Allergan released their latest earnings reports before opening bell this morning. Time Warner posted adjusted earnings of $1.83 per share on $7.2 billion in revenue. Analysts had been expecting $1.37 per share in earnings and $7.01 billion in revenue. In last year’s third quarter, the media giant reported $6.56 billion in revenue.

Allergan posted adjusted earnings of $3.32 per share, compared to the consensus of $3.56 per share, and revenue of $3.62 billion, compared to the consensus of $3.68 billion. In last year’s third quarter, the drug maker posted revenue of $3.47 billion.

Time Warner raises guidance

time warner logo

Time Warner’s GAAP earnings rose to $1.87 per share from $1.26 per share in the same quarter last year. Turner revenue grew to $2.6 billion, while Warner Bros. revenue rose to $1.4 billion. Home Box Office revenue increased to $1.4 billion, while Intersegment eliminations improved to -$271 million.

Time Warner also increased its full-year guidance this morning. The company expects full-year earnings to be between $5.45 and $5.55 per share, compared to the consensus of $5.43 per share. Including a benefit of 28 cents per share from taxes recognized in the third quarter related to a tax accounting change that was approved by the IRS, the company expects adjusted earnings of $5.73 to $5.83 per share.

Shares of Time Warner jumped by as much as 1.98% to $90 per share in premarket trading.

Allergan initiates dividend

Allergan

Allergan’s GAAP loss from continuing operations improved to $1.15 per share from last year’s operating loss of $2.40 per share. Adjusted EBITDA fell to $1.9 billion from $2 billion last year.

Allergan expects full-year revenue to be between $14.45 billion and $14.65 billion, compared to the FactSet consensus of $14.73 billion. The drug maker expects full-year adjusted earnings to be between $13.30 and $13.50 per share.

The company also said it will initiate a quarterly dividend of 70 cents per share starting in March. Allergan has completed the $5 billion share repurchase program it had announced and intends to buy back an additional $8 billion worth of shares by the end of this month as part of its newly announced $10 billion accelerated stock buyback program.

Allergan shares rose by as much as 1.13% to $211 in premarket trades this morning.