The 10-second takeaway
For the quarter ended March 31 (Q1), Time Warner Cable Inc (NYSE:TWC) met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share expanded.
Margins dropped across the board.
Revenue details
Time Warner Cable Inc (NYSE:TWC) reported revenue of $5.48 billion. The 25 analysts polled by S&P Capital IQ predicted a top line of $5.49 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter’s $5.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.41. The 23 earnings estimates compiled by S&P Capital IQ predicted $1.37 per share. Non-GAAP EPS of $1.41 for Q1 were 8.5% higher than the prior-year quarter’s $1.30 per share. GAAP EPS of $1.34 for Q1 were 12% higher than the prior-year quarter’s $1.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 51.9%, 130 basis points worse than the prior-year quarter. Operating margin was 19.9%, 130 basis points worse than the prior-year quarter. Net margin was 7.3%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter’s average estimate for revenue is $5.59 billion. On the bottom line, the average EPS estimate is $1.69.
Next year’s average estimate for revenue is $22.25 billion. The average EPS estimate is $6.56.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 195 members out of 237 rating the stock outperform, and 42 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Time Warner Cable Inc (NYSE:TWC) a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Time Warner Cable Inc (NYSE:TWC) is outperform, with an average price target of $101.42.
The article Time Warner Cable Beats Analyst Estimates on EPS originally appeared on Fool.com and is written by Seth Jayson.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.
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