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.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does TW Telecom fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add TW Telecom to My Watchlist.