The loss wasn’t big, but it was a loss, and it also was not unexpected, according to Marci Ryvicker of Wells Fargo Securities. The company just missed hitting expectations.
Revenue fell 1% to $7.525B, $39B less than WFS was looking for and $21B below consensus.
Both Turner and HBO were bright spots, although Turner missed its forecast. It grew 2% to $2.6B, while Ryvicker was expecting a 3% gain. The brief 2014 MLB World Series was cited as a factor in the miss.
HBO did nicely, picking up 6% to $1.338B, a nice surprise to WFS which was looking for a 5% gain.
Adjusted operating income didn’t fare so well for the company, down 9% to $1.596B. But that was significantly better than the WFS 11% drop and the consensus 12% drop. Ryvicker said unexpected cost savings a $14M in eliminations helped the company beat the Street in this category.
The company had an unusual headwind in the form of exposure to the collapse of currency in Venezuela, which accounted for a loss of $173M.
Looking ahead, the company is planning a combined upfront for all of its assets, and is expecting advertising to be flat during the year. It has also set earnings per share goals, based on $4.09 for 2014. It’s target for 2015 is $4.65, followed by $6 for 2016 and $8 for 2018.
