Time Warner shares close lower on Wednesday, company’s quarterly earnings exceed market expectations as blockbuster movies support

Time Warner Inc’s (TWX) quarterly earnings, reported on May 3rd, outstripped market expectations, driven by successful movies such as “The LEGO Batman Movie” and “Kong: Skull Island”.

Time Warner shares closed lower on Wednesday, while also marking their fourth loss in the past five trading sessions. The stock edged down 0.28% ($0.28) to $99.05, after touching an intraday low at $98.79, or a price level not seen since April 17th ($98.25). In the week ended on April 30th the shares of the multinational entertainment company lost 0.57% of their market value compared to a week ago, which marked the fifth drop in the past eight weeks and also the worst performance since the week ended on March 26th. The stock has neutralized earlier gains and is now down 0.22% so far during the current month, following a 1.60% surge in April. The latter has been the ninth gain out of ten months and also the largest one since December 2016. For the entire past year, Time Warner shares gained 49.27%.

The Box Office Mojo tracking firm reported gross proceeds of over $308 million worldwide for “The LEGO Batman Movie” and proceeds of more than $562 million globally for “Kong: Skull Island” as of the end of last month.

Time Warner’s revenue from Warner Bros, its largest unit in terms of revenue, was reported to have increased 8.2% to $3.37 billion during the quarter ended on March 31st. At the same time, the company’s revenue from Home Box Office grew 4.1% to $1.57 billion.

Total revenue was reported to have risen to $7.74 billion during the latest quarter from $7.31 billion during the same period a year ago. In comparison, the median analyst estimate had pointed to $7.67 billion in revenue.

Time Warner’s net income went up to $1.42 billion ($1.80 a share) during the first quarter of 2017 from $1.21 billion ($1.51 a share) during the same three-month period a year ago.

Meanwhile, the company’s earnings per share, excluding special items, were reported to have increased to $1.66 during the latest quarter from $1.49 a year earlier. In comparison, the median forecast by analysts had pointed to earnings of $1.45 per share, according to Thomson Reuters I/B/E/S.

Yesterday the New York City-based entertainment conglomerate also said its merger with AT&T was set to be finalized before the end of the current year.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Time Warner’s stock price, have a median target of $107.50, with a high estimate of $110.00 and a low estimate of $90.00. The median estimate is an 8.53% surge compared to the closing price of $99.05 on May 3rd.

The same media also reported that 20 out of 33 surveyed investment analysts had rated Time Warner’s stock as “Hold”, while 13 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Time Warner stock are presented as follows:

R1 – $99.15
R2 – $99.26
R3 (Range Resistance – Sell) – $99.36
R4 (Long Breakout) – $99.67
R5 (Breakout Target 1) – $100.03
R6 (Breakout Target 2) – $100.18

S1 – $98.95
S2 – $98.84
S3 (Range Support – Buy) – $98.74
S4 (Short Breakout) – $98.43
S5 (Breakout Target 1) – $98.07
S6 (Breakout Target 2) – $97.92

By using the traditional method of calculation, the weekly levels of importance for Time Warner Inc (TWX) are presented as follows:

Central Pivot Point – $99.71
R1 – $100.16
R2 – $101.05
R3 – $101.50
R4 – $101.95

S1 – $98.82
S2 – $98.37
S3 – $97.48
S4 – $96.59