Time Warner Earnings come in-line with most expectations

Time Warner (NYSE:TWX) slightly exceeded the revenue expectations with $12.5 billion versus $12.49 billion estimates. Earnings per share were $0.43 after a $0.21 gain, so it posted $0.22 EPS; earnings estimates were $0.23 on a rounded up basis (FirstCall was $0.23 and Reuters was $0.22); StarMine (subscription required) was predicting $0.22 as of last week.

It has now used $16.4 billion for share buybacks to purchase a cumulative 912 million shares (over 30 days trading volume) and plans to complete its $20 Billion buyback plan in the first half of 2007.

Time Warner has also said that it expects 30% to 40% of OIBDA into free cash flows in 2007. It expects 2007 EPS of $1.00, including a $0.10 approximate gain on the sale of AOL access in Germany and excluding future merger and ongoing restructuring charges. The operating income is expected to run $7.362 billion, which will give an estimated $4.76 billion in free cash flow. Earnings expectations for 2007 are currently $0.99 to $1.01 from the various 'consensus' estimates.

Here is the full earnings release if you wish to peruse it for more detail.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

Also check out some other earnings reports that we're following, and let us know your thoughts on earnings expectations.