Time Warner (TWX) reported that Q4 results beat estimates, guided up 2016 numbers, hiked the dividend 15%, and approved another $5 billion stock buyback plan. In response, the stock traded down to new lows with a plunge of over 10% at one point. The company guided to '16 EPS of $5.30 to $5.40 per share. The stock now trades at roughly 11.5x EPS guidance. The market remains too pessimistic on the media sector. Disclosure: Long TWX