Media conglomerate Time Warner Inc. ( TWX ) on Wednesday posted better-than-expected second quarter earnings, driven by the success of its TV shows and movie box office results.
The New York-based company reported second quarter net income of $638 million, or 59 cents per share, compared with $562 million, or 49 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 60 cents per share.
Revenue rose 10% from last year to $7.03 billion.
On average, Wall Street analysts expected a smaller profit of 55 cents per share, on lower revenue of $6.81 billion.
TWX's earnings were bolstered by the blockbuster performance of its "The Hangover Part II" comedy film, which grossed over $563 million through the end of July since its release on May 27.
Looking ahead, the company said it expects 2011 adjusted earnings to rise "at least" in the low teen percent. Analysts are looking for around a 15% uptick.
Time Warner shares were mostly flat in premarket trading Wednesday.
The Bottom Line
Shares of Time Warner ( TWX ) have a 2.76% dividend yield, based on last night's closing stock price of $34.00. The stock has technical support in the $31-$32 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels.
Time Warner Inc. ( TWX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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