Time Warner became the latest in a long line of corporate giants to reveal its earnings would fall short of expectations. The multimedia giant informed investors today that weak ad revenues at its cable networks CNN, TBS and TNT, as well as slow music sales and a disappointing box-office showing for the Adam Sandler vehicle "Little Nicky," will keep its cash earnings growth over 1999 to 11%, instead of the 12% to 13% that had been forecast. The company could draw some comfort from its nearly complete merger with America Online. AOL told analysts it would meet Wall Street's expectations for the fourth quarter, but the market nonetheless punished both companies' shares. Shortly after 3 p.m ET today, Time Warner's stock had fallen 9 percent, to $63.25, while AOL shares fell 7 percent, to $42.24.
Copyright December 2000, Crain Communications Inc.