Tw telecom inc. Earnings: Earnings Higher Than Expected

tw telecom inc. (NASDAQ:TWTC) reported net income above Wall Street’s expectations for the first quarter. Tw telecom is a national provider of managed network services. It specializes in Ethernet and data networking, Internet access, local and long distance voice, VPN, VoIP and network security services.

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tw telecom inc Earnings Cheat Sheet for the First Quarter

Results: Net income for tw telecom inc. rose to $19.3 million (13 cents per share) vs. $12.6 million (8 cents per share) in the same quarter a year earlier. This marks a rise of 53.2% from the year-earlier quarter.

Revenue: Rose 7.9% to $358.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: tw telecom inc. beat the mean analyst estimate of 11 cents per share. Analysts were expecting revenue of $357.6 million.

Quoting Management: “We posted our 30th consecutive quarter of sequential revenue growth, delivered strong margins, and grew both net income and levered free cash flow, while we continued to advance the business with new products and capabilities,” said Larissa Herda, tw telecom’s Chairman, CEO and President. “Our integrated national network platform, with one common architecture and one set of systems, enables us to offer scalable Ethernet and Intelligent Network solutions with unique features and capabilities. These services will help to further differentiate us as we provide better, faster and easier network solutions that enable enterprise, data center and cloud demand.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 8.2% to $351.5 million in the fourth quarter of the last fiscal year. The figure rose 7.5% in the third quarter of the last fiscal year from the year earlier and climbed 6.8% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after meeting expectations in the fourth quarter of the last fiscal year with net income of 11 cents per share.

Last quarter, gross margins grew by 0.5 percentage point from the year-earlier quarter to 58.4%. This breaks a streak of two consecutive quarters of shrinking margins.

Looking Forward: The average estimate for the second quarter remains unchanged at 12 cents a share. For the fiscal year, the average estimate has moved down from 55 cents a share to 51 cents over the last ninety days.

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

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