Tw telecom Earnings Preview

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Tw telecom (NAS: TWTC) only managed to meet estimates last quarter, but investors hope that it will surpass expectations this quarter. The company will unveil its latest earnings on Tuesday, August 9. Tw telecom is a national provider of managed network services specializing in ethernet and data networking, Internet access, local and long distance voice, VPN, VoIP, and network security services.

What analysts say:

What our community says:
CAPS All Stars are solidly backing the stock, with 83.8% granting it an "outperform" rating. The community at large agrees with the All Stars, with 78.2% assigning it a rating of "outperform." Fools are keen on tw telecom, though the message boards have been quiet lately with only 43 posts in the past 30 days. Despite the majority sentiment in favor of tw telecom, the stock has a middling CAPS rating of three out of five stars.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

58.0%

58.6%

58.4%

58.2%

Operating Margin

13.3%

12.2%

11.5%

11.3%

Net Margin

3.8%

5.4%

5.0%

76.5%

For all our tw telecom-specific analysis, including earnings and beyond, add tw telecom to My Watchlist.

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At the time this article was published

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