Time Warner Incs (TWX) fourth-quarter revenue and profit, reported on Thursday, exceeded market expectations, while drawing support from the success of the latest DC Comics-based movie “Justice League” featuring US actor Ben Affleck and actress Gal Gadot of Israel.
Time Warner shares closed higher for a second consecutive trading session on Thursday. It has also been the sharpest daily surge since December 21st. The stock went up 1.73% ($1.65) to $97.00, after touching an intraday high at $97.75, or a price level not seen since November 2nd 2017 ($99.85).
In the week ended on January 28th the shares of the multinational entertainment company added 1.57% to their market value compared to a week ago, which marked a second consecutive period of gains.
The stock rose 4.24% in January to mark its first gain since September 2017. It has also been the best monthly performance since December 2016.
For the entire past year, Time Warner shares fell 5.24% following a 49.27% surge in 2016.
Time Warners total revenue went up 9% year-on-year to $8.61 billion during the fourth quarter ended on December 31st. In comparison, analysts on average had expected $8.42 billion in revenue.
Advertising revenue at Time Warners Turner division, that includes CNN, TNT and TBS, rose 2% during the past quarter from a year ago, supported by Major League Baseball post-season games as well as stronger performance in Turner’s international networks.
At the same time, revenue at Warner Bros went up 4.8% year-on-year to reach $4.05 billion during the fourth quarter. Tracking firm Box Office Mojo reported that superhero movie “Justice League” had generated more than $656 million in revenue worldwide as of January 28th.
Meanwhile, revenue at Home Box Office (HBO) increased 12.7% to $1.68 billion during the latest quarter, with the HBO premium channel currently having over 5 million on-line streaming subscribers.
As a result, Time Warners net income attributable to shareholders jumped to $1.39 billion ($1.75 per share) during the quarter ended on December 31st from $293 million ($0.37 per share) during the same period a year ago. The result was influenced by a gain of $1.06 per share associated with the reform of the US tax code.
Time Warners adjusted earnings per share were reported at $1.60 during the past quarter, which exceeded the median analyst estimate pointing to earnings of $1.43 per share.
According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Time Warner’s stock price, have a median target of $103.00, with a high estimate of $110.00 and a low estimate of $90.00. The median estimate is a 6.19% surge compared to the closing price of $97.00 on February 1st.
The same media also reported that 18 out of 23 surveyed investment analysts had rated Time Warner’s stock as “Hold”, while 5 – as “Buy”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Time Warner stock are presented as follows:
R1 – $97.16
R2 – $97.32
R3 (Range Resistance – Sell) – $97.48
R4 (Long Breakout) – $97.95
R5 (Breakout Target 1) – $98.51
R6 (Breakout Target 2) – $98.75
S1 – $96.84
S2 – $96.68
S3 (Range Support – Buy) – $96.52
S4 (Short Breakout) – $96.05
S5 (Breakout Target 1) – $95.49
S6 (Breakout Target 2) – $95.25
By using the traditional method of calculation, the weekly levels of importance for Time Warner Inc (TWX) are presented as follows:
Central Pivot Point – $94.28
R1 – $95.45
R2 – $96.07
R3 – $97.24
R4 – $98.41
S1 – $93.66
S2 – $92.49
S3 – $91.87
S4 – $91.25
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