Is Time Warner’s Stock Getting Unfairly Punished?

Shareholders of Time Warner Inc TWX 1.24% are scratching their heads this week as the stock is down another 6 percent on Thursday following a nearly 9 percent dive on Wednesday in response to Q2 earnings. Here’s a look at what is going on with Time Warner.

The Numbers

What’s particularly frustrating for shareholders about the move is that the company easily beat consensus earnings and revenue expectations for the quarter, reporting earnings per share of $1.16 and revenue of $7.35 billion versus consensus estimates of $1.03 EPS on revenue of $6.9 billion. The company reports record-high adjusted operating income of $1.86 billion and 8 percent year-over-year revenue growth for the quarter.

Macquarie’s Take

Analyst Tim Nollen calls…

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