Time Inc. (TIME), one of the leading media companies, came out with fourth-quarter 2014 results, wherein earnings of 73 cents per share missed the Zacks Consensus Estimate of 78 cents and fell 28.2% year over year. Subdued top line performance was the primary cause.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2014 has remained unchanged in the last 30 days. However, if we look at Time Inc’s performance so far in 2014, it gives a mixed picture. Before succumbing to a negative earnings surprise of 6.4% in the quarter under review, the company had registered positive earnings surprises in the second and third quarter of 2014.
Revenues: Time Inc generated net sales of $895 million that decreased 7.3% year over year and fell short of the Zacks Consensus Estimate of $902 million due to lower Circulation and Advertising revenues. Excluding impact of corporate transactions, revenues also fell 4%.
For 2015, management expects revenues to decline in the range of 3% to 6%.
Zacks Rank: Currently, Time Inc carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement.
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