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Time Warner share selling abates after Q4 results

Shares of US media group Time Warner recover from an earlier session bruising after printing disappointing Q4 earnings as company offers sweeteners
Time Warner share selling abates after Q4 results
Will audiences still flock to cable in the future?

Shares in US media giant Time Warner (NYSE:TWX) recovered from an earlier bruising after printing disappointing fourth quarter earnings which had helped take the stock down a total of 30% in the past 12 months.

Time Warner shares opened down 11.3% at a new 52-week low after missing revenue targets. The media group's revenues were US$7.08bn. Analysts expected the top line to hit US$7.53bn.

But a combination of bullish forecasts, raising its dividend by 15%, and launching a new US$5bn stock buyback initiative lifted sentiment and helped shares pare losses.

The company projected adjusted earnings for this year of between US$5.30 and US$5.40 a share, which was ahead of analysts' expectations for around US$5.28.

But in context, to lose a third of market value within a year is a big deal, as investors fret that cable networks will lose audiences and advertising as alternative digital media platforms grow.

Shares were last seen down 1% at US$62.56, after starting the day at US$56.27.



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