Time Warner Cable Earnings: Not Enough to Please Investors

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. Shares are down 9.63%.

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Time Warner Cable Inc. Earnings Cheat Sheet

Results: Net income decreased -9.04% to $513 million ($1.68 per diluted share) in the quarter versus a net gain of $564 million in the year-earlier quarter.

Revenue: Rose 9.95% to $5.49 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Time Warner Cable Inc. reported adjusted net income of $1.68 per share. By that measure, the company beat the mean analyst estimate of $1.55. It missed the average revenue estimate of $5.5 billion.

Quoting Management: Time Warner Cable Chief Executive Officer Glenn Britt said: “We delivered revenue growth of almost 9% in 2012 – powered by our acquisition and successful integration of Insight Communications, continued success in residential high-speed data and business services, and a best-ever year in advertising…

…In the year ahead, we plan to focus on operational excellence as we invest to capture long-term opportunities and drive profitable growth.”

Key Stats:

Revenue increased 2.37% from $5.36 billion in the previous quarter. Net income decreased 36.51% from $808 million 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 $1.62 to a profit $1.59. For the current year, the average estimate has moved up from a profit of $5.65 to a profit of $6.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)