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Wednesday, Time Warner Inc. (TWX) said it swung to a fourth quarter profit, beating analyst expectations, while AOL Inc. (AOL) posted a slim profit in its first quarterly report since spinning off from Time Warner.
New York City-based media giant Time Warner reported net income of $627 million, or 53 cents per share, compared with a net loss of $16 billion, or $13.41 per share, in the year-ago period. Adjusted profit came to 55 cents per share and revenue rose 2% from a year ago to $7.32 billion.
The consensus estimate of analysts surveyed by Thomson Reuters called for a profit of 52 cents per share on revenue of $7.14 billion.
For the full year, Time Warner's earnings totaled $2.47 billion, or $2.07 per share. Time Warner's forecast for 2010 EPS fell in line with analysts' estimates for $2.12 per share.
Time Warner also boosted its quarterly dividend 13% to 21.25 cents per share.
AOL said its net income for the fourth quarter came to $1.4 million, or a penny per share, compared with a loss of $1.96 billion, or $18.52 a share, in the same period a year ago. Excluding assorted charges and costs, earnings would have equaled 71 cents per share, compared to the 62 cents per share anticipated by analysts.
Revenue for the quarter was $809.7 million, topping the $763.5 million consensus estimate.
However, Wall Street generally expects AOL to perform poorly in the near future, as it loses ISP subscribers and adjusts to being an independent entity again.
Time Warner shares fell in morning trading, down about 50 cents, or 1.75%, by mid day, while AOL shares were up more than 2%, or 50 cents.
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