Time Warner Cable Hits Estimates, But GAAP Results Lag Last Year's
Time Warner Cable (NYS: TWC) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Time Warner Cable met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted.
Margins dropped across the board.
Time Warner Cable reported revenue of $5.49 billion. The 25 analysts polled by S&P Capital IQ expected to see revenue of $5.51 billion on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $4.99 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.57. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.56 per share. GAAP EPS of $1.68 for Q4 were 4.0% lower than the prior-year quarter's $1.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.2%, 110 basis points worse than the prior-year quarter. Operating margin was 21.6%, 90 basis points worse than the prior-year quarter. Net margin was 9.4%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.51 billion. On the bottom line, the average EPS estimate is $1.59.
Next year's average estimate for revenue is $22.35 billion. The average EPS estimate is $6.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 193 members out of 234 rating the stock outperform, and 41 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Time Warner Cable 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 is outperform, with an average price target of $108.01.
Looking for alternatives to Time Warner Cable? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Time Warner Cable to My Watchlist.
The article Time Warner Cable Hits Estimates, But GAAP Results Lag Last Year's originally appeared on Fool.com.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 ofMotley 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.