Time Warner’s Earnings Beat Analyst’ Expectations(TWX)

Time Warner Inc. (NYSE: TWX) reported profits for the third quarter that were down compared to last year’s profits. Despite declining sales, Time Warner Inc. was still able to beat analyst expectations. According to their quarterly earnings call, the media giant had profits of $662 million or $0.56 per share, a figure which was down 38% from the previous year, and they beat out analyst expectations of $0.53 per share. Sales of Time Warner dropped down 6% to $7.13 billion, beating out sales expectations of $7.07 billion.

In addition, TWX also announced that they were raising guidance to $2.05 which was slightly higher than the $2.03 analyst’s initially expected. Not included in this guidance is the $100 million from the restructuring of their publishing arm Time Inc. Layoffs are expected in order for the company to reach the cost cuts.

In a statement addressed to investors, Time Warner CEO, Jeff Bewkes adds "Time Warner is firmly on track to post solid results this year in spite of the tough economic environment", and that "I'm confident that the new content-focused Time Warner will be well positioned to deliver steady and attractive stockholder returns in 2010 and beyond."