Time Warner Cable Earnings: Here’s Why Investors are Ambivalent Now

Time Warner Cable Inc. (NYSE:TWC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Time Warner Cable Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.5% to $1.41 in the quarter versus EPS of $1.20 in the year-earlier quarter.

Revenue: Rose 6.64% to $5.48 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Time Warner Cable Inc. reported adjusted EPS income of $1.41 per share. By that measure, the company beat the mean analyst estimate of $1.38. It missed the average revenue estimate of $5.49 billion.

Quoting Management: Time Warner Cable Chief Executive Officer Glenn Britt said: “Business Services continues to perform very well, generating 25% year-over-year revenue growth, and is on track for another terrific year. In Residential Services, we’re executing on our revitalization plans to build a fundamentally stronger and more agile operation. As a result, I remain very excited about the long-term prospects for this business.”

Key Stats (on next page)…

Revenue decreased 0.18% from $5.49 billion in the previous quarter. EPS decreased 16.07% from $1.68 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.73 to a profit $1.69. For the current year, the average estimate has moved down from a profit of $6.88 to a profit of $6.54 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)