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What Factors Are Driving Up Time Warner Stock?

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AT&T is moving closer to acquiring Time Warner

AT&T (T) is moving closer to acquiring Time Warner and expects to close the acquisition by the end of this year. There have been reports that AT&T is replacing Time Warner’s CEO (chief executive officer) Jeff Bewkes. There are also reports that AT&T is contemplating a sale of Time Warner’s CNN television network. We’ll look at that later in this series.

Time Warner stock closed at $102.17 on August 8, 2017. The stock has fallen 0.50% since the day the company announced its earnings and has risen 5.8% year-to-date. In contrast, Time Warner’s peers The Walt Disney Company (DIS) and Comcast (CMCSA) have seen their stocks rise 2.6% and 15.6%, respectively, year-to-date. However, Twenty-First Century Fox (FOXA) has fallen 0.04% year-to-date.

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Time Warner in fiscal 2Q17

Time Warner (TWX) announced its fiscal 2Q17 results on August 2, 2017. The company posted revenues of $7.3 billion for the quarter, which was a 5.0% rise year-over-year. Its operating income was $1.7 billion, a fall of 8.0% year-over-year. It posted EPS (earnings per share) of $1.34, a 12.0% rise year-over-year, and adjusted EPS of $1.33, which exceeded the consensus analyst expectation of $1.19.

In this series

In fiscal 2Q17, Time Warner’s revenues were mainly driven by strong growth in subscription revenues for Turner and HBO. The company’s Warner Bros. scored at the box office with Wonder Woman. In this series, we’ll look at the outlook for Time Warner in the second half of 2017 and the key highlights of its fiscal 2Q17 earnings. We’ll also look at each of its business segments in detail and see how analysts are rating the company after its fiscal 2Q17 earnings. Finally, we’ll look at the company’s technical indicators.

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