Time Warner raises guidance on reversal of some tax reserves

Time Warner is raising its guidance for the full year due to the reversal of some tax reserves.

Time Warner now expects adjusted earnings for 2014 to grow in the high teens percentage rate from 2013 earnings of $3.51. That is up from prior expectations of a low-teens percentage growth rate.

The raised guidance comes as New York-based Time Warner, which owns TV channels like HBO and TBS as well as Warner Bros. studios, reported that its net income fell 18 percent to $967 million, or $1.1 1 per share, in the third quarter. Adjusted results were $1.22 per share, beating analyst expectations of 94 cents per share, according to Zacks Investment Research. Revenue rose 3 percent to $6.24 billion, beating expectations of $6.13 billion.

Shares rose $3.26, or 4.4 percent, to $78.23 in premarket trading about 30 minutes before the market open.