Shares of Time Warner Inc. have climbed 48% on a year-to-date basis, notably outperforming the Zacks categorized Media Conglomerates industry’s growth of 9.9%. Also, this Zacks Rank #3 (Hold) company hit a 52-week high of $95.86 yesterday, closing lower at $95.73. Let’s delve deeper to know more about the stock.

Time Warner’s initiative to foray into new markets has been helping in broadening its client base and product portfolio. Management is now concentrating on enhancing its reach in the existing territories, through investments in local production and gaining distribution rights for new networks. Moreover, rising demand of its content from distributors and other cable or satellite providers is augmenting the company’s revenues.

Time Warner, which accepted the buyout offer of AT&T Inc. (T Quick QuoteT - Free Report) , is also boosting its broadband distribution capabilities. Further, the company has entered into an affiliate agreement for its full suite of networks, comprising TNT, Cartoon Network, CNN and TBS, to be available on Hulu’s live-streaming service, which will be launched in 2017. Going forward, it will unveil an arthouse film SVOD service called FilmStruck.

Further, Time Warner’s Turner Broadcasting and CBS Corp. extended the rights to air The National Collegiate Athletic Association ("NCAA") Men's Division I Basketball Tournament, through 2032. The agreement, effective from 2011, will run through 2024. Given the massive popularity of the event, Time Warner’s investors are likely to enjoy solid returns. With more viewership and higher advertising revenues, the company is poised for top-line growth.

In addition, the company has been expanding its digital presence to facilitate consumers to enjoy content in more platforms and devices.

All these factors have enabled Time Warner to post a better-than-expected bottom-line performance for 19 straight quarters, as it reported third-quarter 2016 results. Consequently, management raised its full-year earnings projection. It now envisions adjusted earnings per share for 2016 between $5.73 and $5.83, including the net-tax benefit of 28 cents.

However, excluding the same adjusted earnings would be in the band of $5.45–$5.55 per share. The company had earlier projected adjusted earnings per share in the range of $5.35–$5.45. Moreover, the Zacks Consensus Estimate has increased 28 cents to $5.71 in the past 60 days.

However, decline in overall advertising spending and currency headwinds may adversely impact the company’s performance. Technology advancements, rapid growth in new video services and shift in consumer viewing patterns, may also pose threats to the company.

Stock that Warrant a Look

A better-ranked stock includes The Liberty Media Group , which has surged 70.1% in the past six months. Moreover, it outperformed the Zacks Consensus Estimate by an average earnings surprise of 72.1% in the trailing four quarters. The stock sports a a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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