Year-to-date stock price rise
Time Warner’s (TWX) stock price closed at $86.66 on November 14, 2016, a rise of 34.5% YTD (year-to-date). In contrast, The Walt Disney Company (DIS) has seen its YTD stock price fall 6.8%, and Viacom (VIAB) has seen its stock price fall 7%. 21st Century Fox (FOXA) stock has risen 0.9% YTD.
What’s boosting Time Warner?
Time Warner is seeing strong demand for its content, not only in the United States but also in international markets. As a result, the company expects a rise in advertising and subscription revenues.
Another reason for the rise in Time Warner’s stock price is the company’s proposed acquisition by AT&T (T). On October 22, AT&T announced that it would acquire Time Warner in a stock and cash transaction of $107.50 per share.
Time Warner has increased its adjusted EPS (earnings per share) estimate and expects it to be in the range of $5.83 to $5.55 per share in 2016. Time Warner also expects strong free cash flow in 2016.
In this series
We’ll take a closer look at the key factors that are driving growth for Time Warner. We’ll also look at the financial metrics, key technical indicators, valuation metrics, and analyst ratings for Time Warner.
But first, let’s look at Time Warner’s outlook for its Turner business division.