Time Warner Cable Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Time Warner Cable (NYSE:TWC) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Time Warner Cable, together with its subsidiaries, is a cable operator in the United States.

Time Warner Cable Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.55 per share, a rise of 11.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.59. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.55 during the last month. Analysts are projecting profit to rise by 42.9% compared to last year’s $6.69.

Past Earnings Performance: Last quarter, the company saw profit of $1.41 per share versus a mean estimate of net income of $1.41 per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the third quarter, profit rose more than twofold to $808 million ($2.60 a share) from $356 million ($1.08 a share) the year earlier, meeting analyst expectations. Revenue rose 9.2% to $5.36 billion from $4.91 billion.

Here’s how Time Warner Cable traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts are projecting a rise of 10.2% in revenue from the year-earlier quarter to $5.5 billion.

Analyst Ratings: With 16 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 17.5% in the first quarter and 7.6% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4% in the fourth quarter of the last fiscal year, 6.4% in the first quarter and 9.3% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.97 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company improved this liquidity measure from 0.89 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 16.9% to $5.36 billion while liabilities rose by 7.4% to $5.53 billion.

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