The 10-second takeaway
For the quarter ended Sep. 30 (Q3), TW Telecom met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins grew.
TW Telecom booked revenue of $368.9 million. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $370.0 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $344.5 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 $0.14. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.14 for Q3 were 40% higher than the prior-year quarter's $0.10 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 57.7%, 40 basis points worse than the prior-year quarter. Operating margin was 15.9%, 220 basis points better than the prior-year quarter. Net margin was 5.7%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $378.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $0.55.
The stock has a four-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 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $26.84.
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