TWX (Update)
Time Warner Inc.
TMT
04/21/2014
Presented
| Date | 04/16/2014 |
| Price | $64.49 |
| Market Cap | $57.60B |
| Ent Value | $75.87B |
| P/E Ratio | 19.41x |
| Book Value | $29.42 |
| Div Yield | 1.7% |
| Shares O/S | 892.66M |
| Ave Daily Vol | 5,910,000 |
| Short Int | 1.44% |
Current
| Price | $98.77 |
| Market Cap | $77.27B |
| Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in four segments: Turner, Home Box Office, Warner Bros., and Time Inc. The Turner segment operates cable networks; digital media properties; free-to-air networks; and entertainment and news networks that offer sports, movies, classic films, reality programming, and news, as well as produces its own programs and acquires rights from third-parties to air programs on its networks. This segment serves cable system operators, satellite service distributors, telephone companies, Internet protocol television system operators, mobile device operators, broadcasters, and other distributors. The Home Box Office segment provides premium pay and basic tier television services comprising HBO and Cinemax; and sells its original programming via DVDs, Blu-ray Discs, and electronic sell-through, as well as licenses its original programming primarily to international television networks. As of December 31, 2013, this segment had approximately 127 million subscribers worldwide. The Warner Bros. segment produces and distributes feature films, television programming, videogames, and other programming; distribute home video products; and licenses rights to its feature films, television programming, and characters. The Time Inc. segment publishes magazines, including People, Sports Illustrated, InStyle, Time, Real Simple, Southern Living, Entertainment Weekly, and Fortune, as well as titles and books; licenses its magazines for print or digital publication to publishers; operates Websites, such as People.com, SI.com, and Time.com.; and offers content marketing, targeted local print and digital advertising programs, and marketing and support services. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York. |
Please note, this is an update to LONG — Time Warner Inc. (TWX), which was originally presented on 2/26/14.
Highlights
Time Warner (TWX) has underperformed year-to-date, and is down ~7-8% in absolute terms. The presenter remains long the stock, and for this coming quarter his model is $0.03 ahead of the Street’s $0.87 estimate (which has been creeping higher, he added). He sees upside coming from HBO, while Warner and Turner are likely to perform in line. Longer-term, he thinks the company’s earnings power is underappreciated and there are a number of potential positive catalysts that could push shares up to $90.
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