TW Telecom Inc. (NASDAQ:TWTC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
TW Telecom Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 30.77% to $0.09 in the quarter versus EPS of $0.13 in the year-earlier quarter.
Revenue: Rose 6.21% to $381.21 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: TW Telecom Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $382.65 million.
Quoting Management: “We’ve had a productive start to the year, as we commenced our growth initiatives, delivered ongoing revenue growth and cash flow generation and executed several strategic balance sheet activities,” said Larissa Herda, tw telecom’s Chairman, CEO and President. “The growth initiatives we announced in February are under way as we focus on delivering additional product innovation, increasing our sales coverage, as well as further automating the business and expanding our market reach. Everything we’re doing is to increase our sales momentum and the trajectory of our revenue growth as we continue with our comprehensive balanced approach to win market share.”
Key Stats (on next page)…
Revenue increased 0.88% from $377.89 million in the previous quarter. EPS decreased 18.18% from $0.11 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 $0.17 to a profit $0.13. For the current year, the average estimate has moved down from a profit of $0.70 to a profit of $0.56 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)