What Does Wall Street See for TW Telecom's Q2?

TW Telecom (Nasdaq: TWTC  ) is expected to report Q2 earnings around Aug. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict TW Telecom's revenues will expand 8.0% and EPS will improve 55.6%.

The average estimate for revenue is $365.5 million. On the bottom line, the average EPS estimate is $0.14.

Revenue details
Last quarter, TW Telecom logged revenue of $358.9 million. GAAP reported sales were 7.9% higher than the prior-year quarter's $332.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.13. GAAP EPS of $0.13 for Q1 were 63% higher than the prior-year quarter's $0.08 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 58.4%, 40 basis points better than the prior-year quarter. Operating margin was 15.4%, 210 basis points better than the prior-year quarter. Net margin was 5.4%, 160 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $1.48 billion. The average EPS estimate is $0.58.

Investor sentiment
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 $23.86.

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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 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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