For Immediate Release
Chicago, IL – November 4, 2010 – Zacks.com Analyst Blog features: Time Warner Inc. (NYSE: TWX), Aetna Inc. (NYSE: AET), Wynn Resorts Limited (Nasdaq: WYNN), Las Vegas Sands Corp. (NYSE: LVS) and MGM Resorts International (NYSE: MGM).
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Here are highlights from Wednesday's Analyst Blog:
Time Warner Beats, Lifts Outlook
Time Warner Inc. (NYSE: TWX), the diversified large-cap media conglomerate, posted better-than-expected third-quarter 2010 results on the heels of increase in advertising and subscription revenues.
The quarterly earnings of 62 cents a share comfortably beat the Zacks Consensus Estimate of 53 cents, and rose 17% from the prior-year quarter. On a reported basis, including one-time items, earnings came in at 46 cents a share, down 16% from 55 cents delivered in the year-ago quarter.
Buoyed by the strong quarterly performance, Time Warner lifted its outlook for full-year 2010. The company now expects adjusted earnings to rise in the high 20% range from adjusted earnings of $1.83 per share in 2009, compared to its earlier prediction of at least 20% increase.
Following this, a positive sentiment may be palpable among the analysts covering the stock, and we could witness a rise in the Zacks Consensus Estimates in the coming days.
Meanwhile, Time Warner's total revenue in the second quarter grew 2% to $6,377 million from the previous year-quarter, but fell short of the Zacks Consensus Revenue Estimate of $6,399 million. Adjusted operating income during the quarter logged a growth of 5% to $1,358 million.
Aetna Tops, Raises Guidance
Health insurer Aetna Inc.'s(NYSE: AET) third quarter operating earnings of 84 cents per share were quite ahead of the Zacks Consensus Estimate of 67 cents. The company had earned 64 cents in the prior-year quarter. Better-than-expected results stemmed from higher commercial underwriting margin due to lower utilization, partially offset by lower commercial insured membership.
However, including prior-year development reserves, earnings came in at $1.00 per share, substantially up 45% year over year. The higher earnings were due to a favorable development of $68.6 million, compared with $21.1 million in the prior-year quarter.
The third largest commercial health insurer reported total revenue of $8.5 billion, ahead of the Zacks Consensus Estimate of $8.3 billion, but down 3% on a year-over-year basis. This was due primarily to a decline in Health Care premium revenues from lower commercial insured membership, as well as a decline from the mix of business, partially offset by premium rate increases.
Total operating expenses were down 1.3% year over year to $1.6 billion due to lower health care costs as well as lower selling and administrative and general expenses. Net investment income of $248.2 million was down 5.8%.Aetna spent a total of $526 million in buying back 17.8 million of shares during the quarter.
Wynn Misses EPS, Beats Revenue
Wynn Resorts Limited (Nasdaq: WYNN) reported third quarter 2010 adjusted earnings of 39 cents per share, below the Zacks Consensus Estimate of 41 cents, but above the year-ago quarter earnings of 33 cents. On a GAAP basis, net loss was $33.5 million or 27 cents per share versus a net income of $34.2 million or 28 cents recorded in the comparable quarter last year.Results were boosted by higher-than-expected revenues. Net revenues surged 30.1% year over year to $1005.9 million, outpacing the Zacks Consensus Estimate of $999.0 million. The outperformance was driven by solid results at its Macau operations.
Our Take
We remain optimistic on the company based on its improving fundamental growth prospects and expansion strategy in Macau. We expect this expansion to significantly add to Wynn Resorts' top line, going forward. Additionally, with global economy showing a gradual recovery, the company is experiencing an increase in demand. Its Las Vegas business, which was the worst hit at the time of the slowdown, is also rebounding, although at a slow rate. Hence, we expect estimates to move up in the coming days.
Wynn Resorts' close competitor Las Vegas Sands Corp. (NYSE: LVS) reported its third quarter 2010 adjusted earnings of 34 cents, beating the Zacks Consensus Estimate of 23 cents and 3 cents in the year-earlier quarter. The company's results reflect a strong performance at its Macau business as well as outstanding results at its new resort in Singapore. Another competitor of Wynn Resorts, MGM Resorts International (NYSE: MGM) is slated to release its third quarter earnings on November 3, 2010.
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AETNA INC-NEW (AET): Free Stock Analysis Report
LAS VEGAS SANDS (LVS): Free Stock Analysis Report
MGM RESORTS INT (MGM): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis Report
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