Time Warner CEO On How The Company Will Reach An EPS Target Of $8 In 2018

Time Warner Inc TWX is one of those rare companies that even after being in an unpredictable industry like media has managed to grow consistently. The earnings of the company have been on a gradual rise quarter after quarter. However, Time Warner is not sitting on the laurels; instead its targeting an EPS of $8 by the year 2018.

Jeff Bewkes, Time Warner chairman and CEO, was recently interviewed by CNBC’s David Faber, in which he explained how he is confident of reaching an EPS target of $8 and also discussed the success of the company’s "bundle" on demand.

"Well that's [EPS of $8 by 2018] what we were explaining to our investors when we had a big day last month. If you put through the elements, we have been on that kind of arc. Over the last four or five years we have been growing the company at about 25 percent a year compound earnings per share growth. This set of numbers, going to six bucks in two years and doubling the earnings in 2018 is actually not even as high the growth rate as what we have been doing," Bewkes said.

"The biggest element of it is affiliate and subscriber support for our networks, that's most of the business and those are very good trends. All over the world, everybody, people watching this show are watching more video, they are liking it more and the big news is they are getting it on demand."

Bewkes thinks that the ‘Bundle’ is going to be a dominant product and on-demand services will rather complement it than pose a threat to it.