Time Warner Inc. share price up, third-quarter profit tops analysts’ forecasts

Time Warner Inc. said that it managed to surpass analysts profit forecasts in the third quarter at a time when the company is claiming that it is better off as an independent entity and does not need a merger in order to consolidate its positions.

The Chief Executive Officer of Time Warner – Mr. Jeff Bewkes said in the companys statement: “We’ve refocused the company over the past few years to aggressively pursue the huge global opportunities we see in video content.”

According to the companys statement, Time Warners profit, excluding restructuring costs and one-time tax benefit, amounted to 97 cents per share. The result beat analysts estimates of 94 cents per share. Time Warner also revealed that its sales over the third quarter increased by 3.3% and reached $6.24 billion in comparison to a previous revenue of $6.04, topping analysts projections for revenue of $6.16 billion.

Apart from announcing its quarterly results, the U.S.-based company also increased its earnings forecast on the upbeat 3% growth at its Turner and Home Box Office cable divisions. Time Warner explained that it expects its adjusted profit to increase by a “high teens” percentage in 2014. In comparison, the company had previously projected a “low teens” percentage increase. At a conference in October this year Mr. Bewkes projected adjusted earnings of nearly $6 per share by 2016 and $8 per share in 2018.

The company has been recently focused on reducing its expenses through large lay-offs in all units. The job eliminations are considered as part of a bigger initiative to prove that it is better off without a merger, after rejecting an $85-a-share takeover bid in July by 21st Century Fox Inc.

Time Warner Inc. fell 4.81% on Tuesday to close at $74.97 per share in New York. Shares rose by 2.04% to $76.50 by 15:03 GMT on Wednesday, marking a one-year increase of $16.96%. The company is valued at $64.09 billion based on yesterdays close. According to CNN Money, the 25 analysts offering 12-month price forecasts for Time Warner Inc. have a median target of $88.00, with a high estimate of $102.00 and a low estimate of $74.00. The median estimate represents a +17.38% increase from the previous of $74.97.