Time Warner Cable Earnings: Exceeds Expectations

S&P 500 (NYSE:SPY) component Time Warner Cable Inc. (NYSE:TWC) reported net income above Wall Street’s expectations for the third quarter. Time Warner Cable, together with its subsidiaries, is a cable operator in the United States.

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Time Warner Cable Inc. Earnings Cheat Sheet

Results: Net income for Time Warner Cable Inc. rose to $809 million ($2.60 per share) vs. $356 million ($1.08 per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 9.2% to $5.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Time Warner Cable Inc. beat the mean analyst estimate of $1.41 per share. It beat the average revenue estimate of $5.13 billion.

Quoting Management: Time Warner Cable Chief Executive Officer Glenn Britt said: “Our third-quarter results were good, with most trends similar to the preceding quarter. Our operating results were driven by continued strong performance in residential high-speed data and business services, an acceleration in high-margin political advertising and the contributions from our Insight systems. During the quarter, we remained focused on investing in growing our business, while at the same time ramping capital returns to our shareholders.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 7.6% and in the first quarter, the figure rose 17.5%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 10 cents in the second quarter, by 8 cents in the first quarter, and by 18 cents in the fourth quarter of the last fiscal year.

Revenue has increased for four consecutive quarters. Revenue increased 9.3% to $5.4 billion in the second quarter. The figure rose 6.4% in the first quarter from the year earlier and climbed 4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s cost of sales rose 9.3% from a year earlier. Last quarter, cost of sales was 46.6% of revenue, similar to the prior-year quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.62 a share to $1.59 over the last ninety days. For the fiscal year, the average estimate has moved up from $5.61 a share to $5.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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