Time Warner Boosts Forecast as Q2 Earnings Beat View (TWX)

By Dividend.com Staff,

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Media giant Time Warner Inc. ( TWX ) on Wednesday posted better-than-expected second quarter earnings, prompting the company to raised its full-year forecast.

The New York-based company reported second quarter net income of $562 million, or 49 cents per share, compared with $524 million, or 43 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 50 cents per share.

Revenue rose 8% from last year, to $6.38 billion.

On average, Wall Street analysts expected a smaller profit of 45 cents per share, on lower revenue of $6.2 billion.

Looking ahead, the company said it now expects a 20% rise in full-year profit compared with 2009, up from a prior forecast of a gain in the mid-teens.

Time Warner shares rose 64 cents, or +2%, in premarket trading Wednesday.

The Bottom Line
Shares of TWX have a dividend yield of 2.63%, based on last night's closing stock price of $32.36. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $34 price level. We would remain on the sidelines for now.

Time Warner Inc. ( TWX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: TWX

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