Time Warner Inc
) strategic initiatives and an upbeat guidance facilitated it to
record a new 52-week high of $58.02 on Thursday, Mar 28.
Shares of this media and entertainment company eventually
closed at $57.62, recording a healthy return of 15.8% year to
date. The company currently trades at a forward P/E of 15.67x,
almost at par with the peer group average of 15.69x.
Alongside, one of the company's peers,
), reached a new 52-week high of $24.15 on Thursday, Mar 28.
Time Warner has been expanding its digital presence, enabling
consumers to enjoy its content through numerous platforms and
devices. Alongside, it has entered into content distribution
deals with companies like
Time Warner Cable Inc
Meanwhile, Warner Bros. became the first movie studio to offer
video on demand, and acquired Flixster, a movie search
application on smartphones and mobile devices.
The company also launched a digital movie technology,
UltraViolet, through which consumers have the choice to watch
movies on their preferred Internet-connected devices. The device
is available in the U.S., Canada and the U.K., and now the
company plans to launch the technology in Australia, France,
Germany, Ireland and New Zealand.
Time Warner has been actively managing its cash flows
returning much of its free cash to shareholders via dividend and
share repurchases. During the last reported quarter, the company
generated free cash flow of $990 million.
Time Warner hiked its quarterly dividend by 11% to 28.75 cents
a share and announced a new share buyback plan of $4 billion.
From Jan 1, 2012 through Feb 1, 2013, Time Warner bought back 84
million shares, aggregating $3.5 billion.
Going forward, this Zacks Rank #3 (Hold) stock projects low
double-digit growth rate in earnings per share for 2013.
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