Time Warner just cut its outlook for next year and now the stock is getting whacked.
On its third quarter earnings conference call, the company said it now sees 2016 adjusted earnings per share coming in closer to $US5.25 per share. Expectations were 2016 earnings to come in closer to $US5.60 per share, according to Bloomberg.
In cutting this outlook the company cited a likely increase in investments, which it said could run into the “hundreds of millions,” though an exact number wasn’t given.
For 2015, the company sees earnings coming in $US4.60-$US4.70 per share, reaffirming its previous outlook.
Following this news, the stock took a quick ugly leg lower, falling as much as 7%.
Earlier on Wednesday, Time Warner reported earnings and revenue in the third quarter that beat expectations.
Adjusted earnings per share hit $US1.25 in the quarter, better than the $US1.09 that was expected by Wall Street, while revenue hit $US6.56 billion, better than the $US6.51 billion that was expected.
More to come …
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