Time Warner Cable Inc. Earnings Cheat Sheet: The Streak is Broken

S&P 500 (NYSE:SPY) component Time Warner Cable Inc. (NYSE:TWC) reported its results 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for the cable company fell to $356 million ($1.08 per share) vs. $360 million ($1 per share) a year earlier. This is a decline of 1.1% from the year earlier quarter.

Revenue: Rose 3.7% to $4.91 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TWC fell short of the mean analyst estimate of $1.14 per share. Analysts were expecting revenue of $4.95 billion.

Quoting Management: Time Warner Cable Chief Executive Officer Glenn Britt said: “We posted steady financial progress in the third quarter, powered by residential broadband and business services, and we’re pleased with the stronger subscriber results in August and September.We continue to focus our efforts on maximizing our growth opportunities.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 22.8% from the year earlier, while the figure increased 51.9% in the first quarter, 21.7% in the fourth quarter of the last fiscal year and 34.3% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 4.4% to $4.94 billion in the second quarter. The figure rose 5% in the first quarter from the year earlier and climbed 5.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by 2 cents.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is $1.26 per share, an increase from $1.25 sixty days ago. Over the past three months, the average estimate for the fiscal year has climbed from $4.53 per to share to $4.56.

Competitors to Watch: Comcast Corporation (NASDAQ:CMCSA), Cablevision Systems Corp. (NYSE:CVC), Mediacom Communications Corp. (NASDAQ:MCCC), Time Warner Inc. (NYSE:TWX), AT&T Inc. (NYSE:T), DISH Network Corp. (NASDAQ:DISH), Charter Communications, Inc. (NASDAQ:CHTR), Verizon Communications Inc. (NYSE:VZ), DIRECTV (NASDAQ:DTV), and China Cablecom Hldgs. Ltd. (NASDAQ:CABL).

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(Source: Xignite Financials)