TW Telecom Earnings: Here’s Why the Stock is Rising 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 up 0.02%.

TW Telecom Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.38% to $0.11 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 6.86% to $389.5 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 $0.12. It beat the average revenue estimate of $385.86 million.

Quoting Management: “Our second quarter results demonstrate our ability to continue to successfully grow revenue, deliver healthy margins and generate cash flow while investing in the business, executing our growth initiatives and delivering exceptional customer service,” said Larissa Herda, tw telecom’s Chairman, CEO and President. “We substantially increased our sales talent, launched new products and features and offered more innovative choices for enterprises that will further differentiate tw telecom in the marketplace. We have a comprehensive, balanced approach to win market share with numerous initiatives to increase our sales momentum and the trajectory of our revenue growth.”

Key Stats (on next page)…

Revenue increased 2.17% from $381.21 million in the previous quarter. EPS increased 22.22% from $0.09 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 $0.14 to a profit $0.13. For the current year, the average estimate has moved down from a profit of $0.52 to a profit of $0.49 over the last ninety days.

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

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