TW Telecom Misses Where It Counts
TW Telecom (NAS: TWTC) reported earnings on Monday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), TW Telecom met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins improved, and net margins grew.
TW Telecom reported revenue of $364.5 million. The 13 analysts polled by S&P Capital IQ expected a top line of $365.5 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $338.4 million.
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 $0.13. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.14 per share. GAAP EPS of $0.13 for Q2 were 44% higher than the prior-year quarter's $0.09 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 58.0%, 30 basis points worse than the prior-year quarter. Operating margin was 15.5%, 180 basis points better than the prior-year quarter. Net margin was 5.3%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $372.5 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.48 billion. The average EPS estimate is $0.58.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 87 members out of 111 rating the stock outperform, and 24 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give TW Telecom a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TW Telecom is outperform, with an average price target of $25.38.
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The article TW Telecom Misses Where It Counts originally appeared on Fool.com.Seth Jaysonhad 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 positions in the stocks mentioned above. 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.
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