Quotenews Stock Blog
Time Warner Q3 earnings preview
Posted 2006-10-12 By : order cialis buy online without a prescription
In the second quarter of 2006, Time Warner Inc. (NYSE: TWX) had revenue of $10.7 billion, a 1% increase from the same quarter a year ago. Operating income was $1.8 billion. By the five major operating segments, here is what investors will look for in TWX third quarter results.

In Q2, AOL had revenue of $2.046 billion, off 2% from the year before. Operating income for the unit was down 4% to $336 million. As the big Internet operation begins its transition to an advertising base model, watch for revenue to fall further, to under $2 billion, and for operating income to drop below $300 million. With AOL's audience numbers flat, ad revenue will not make up for the ongoing drop in subscription revenue.

Revenue at the company's cable operations rose 15% in Q2 over the same period a year ago hitting $2.721 billion. Operating income was up 22% to $600 million. Excluding any impact from the company's deal to take on Adelphia subscribers, which should not show up until Q4, revenue at TWX cable should rise to nearly $2.9 billion as high-speed data and VoIP sales continue sharp increases. Operating income could hit $700 million.

The company's film entertainment business should continue to struggle. In Q2 revenue was $2.363 billion, a drop of 10% from the same quarter a year ago. Operating income rose 11% to $141 million. There is no reason to think that home video and studio revenue will improve. The box office has continued to be poor for the studio, which now ranks sixth in receipts among major studios in 2006. Look for revenue to fall below $2.25 billion, and operating income to be below $125 million.
View Comments[ 0 ]  | Add Comment
Jacuzzi: Private equity jumps in hot tub for $990 million
Posted 2006-10-12 By : order cialis buy online without a prescription
Over the past few years, the stock price of Jacuzzi (NYSE: JJZ) has been stuck in a trading range of about $8 to $10. It has certainly been frustrating and, as a result, the company decided to go private – with the help of the private equity firm, Apollo Management LP.

The offer is for $12.50. Actually, this is still below Jacuzzi's 52-week high of $12.56. The total value of the deal comes to about $990 million -- which is actually a fairly small deal compared to recent blockbusters, such as HCA and Freescale.

Jacuzzi has been undergoing a restructuring, which is starting to show results. This should set the stage for a strong 2007.

Also, another big attraction is the company's brand. Actually, it was the Jacuzzi brothers who started the company in the early 1990s. And, over the years, the company has been able to acquire over 200 patents on its innovations.

In other words, there is stability with Jacuzzi, which is key with private equity. Basically, this looks like a pretty easy deal to get done.
View Comments[ 0 ]  | Add Comment
About Author
No. of Posts:
Latest Posts
Time Warner Q3 earnings preview
Jacuzzi: Private equity jumps in hot tub for $990 million
Before the bell 10-12-06: AAPL, GE, TWX, WMT
Yahoo! after the bell 10-11-06: Patient or late in the game?
eBay after the bell 10-11-06: Trying to pacify sellers?
Post GooTube deal - what should Yahoo! do now?
test blog
Daily Options Update: MO is option volume leader, MSFT volatility is low
Strong day for oil stocks
  Home | Contact Us | Privacy Policy | FAQs | Registration  
  © Copyright 2006 Quote News.com All Rights Reserved.