TW Telecom Earnings: Here’s Why Shares are Down Now

TW Telecom Inc. (NASDAQ:TWTC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.3%.

TW Telecom Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share was the same as the year-earlier quarter at $0.11.

Revenue: Rose 7.48% to $377.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TW Telecom Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.15. It beat the average revenue estimate of $376.8 million.

Quoting Management: “In 2012, we achieved strong comprehensive financial results while rapidly deploying industry-leading Intelligent Network and advanced Ethernet capabilities,” said Larissa Herda, tw telecom’s Chairman, CEO and President. “In 2013, we’re further advancing our long-term strategic vision which includes providing customers with unprecedented control and visibility of their network that we believe will accelerate the momentum in our business. We’re implementing several growth initiatives including investing in new technologies to drive ongoing innovative capabilities, expanding our sales resources for greater distribution and further automating network functionality for more dynamic customer connectivity. These initiatives are all focused on further driving our revenue growth.”

Key Stats (on next page)…

Revenue increased 2.4% from $368.93 million in the previous quarter. EPS decreased 21.43% from $0.14 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.15 and has not changed. For the current year, the average estimate is a profit of $0.55, which is the same with that ninety days ago.

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