Time Warner Inc.’s TWX initiatives such as foraying into new markets, divestment activities and digital endeavors bode well for its performance. All these strategic endeavors helped the stock to hit a new 52-week high of $89.21 on Jul 2. Shares of this media and entertainment company have surged 26% over the past one year.
We believe that the company’s focus on original programming, reducing costs and increasing investments in key areas will enhance profitability. Apart from this, the company has been expanding its digital presence to enable consumers to access content from several platforms and devices. Advancing its digital facilities should aid earnings growth.
Time Warner has also been benefiting from its significant international presence, which has helped the company to broaden its client base and product portfolio. The company operates in the United Kingdom, Germany, Canada, France, Japan and other countries apart from the United States.
Furthermore, the company’s positive earnings streak has provided support to the stock. In the trailing four quarters, Time Warner’s earnings have outperformed the Zacks Consensus Estimate by an average of 15%, including 9.2% in the last concluded quarter.
Despite currency headwinds, this Zacks Rank #3 (Hold) company posted better-than-expected first-quarter fiscal 2015 results, wherein adjusted earnings per share of $1.19 came in ahead of the Zacks Consensus Estimate of $1.09, reflecting strength across Turner, Home Box Office and Warner Bros.
Moreover, Time Warner has been actively managing its cash flows in order to return much of its free cash to shareholders via dividend payments and share repurchases. From Jan 1 through Apr 24, 2015, the company bought back about 14 million shares, aggregating approximately $1.1 billion.
Apart from Time Warner, The Walt Disney Company DIS, Foot Locker, Inc. FL and Skechers USA Inc. SKX, also hit 52-week highs of $115.67, $68.81 and $116.54, respectively, on Jul 2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment