Time Warner Cable
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Time Warner Cable met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share grew significantly.
Margins increased across the board.
Time Warner Cable tallied revenue of $4.99 billion. The 22 analysts polled by S&P Capital IQ expected to see sales of $4.97 billion. Sales were 4% higher than the prior-year quarter's $4.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.39. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.20 per share on the same basis. GAAP EPS of $1.75 for Q4 were 61% higher than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.3%, 190 basis points better than the prior-year quarter. Operating margin was 22.5%, 160 basis points better than the prior-year quarter. Net margin was 11.3%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.01 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $20.50 billion.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 184 members out of 221 rating the stock outperform, and 37 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Time Warner Cable a green thumbs-up, and five 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 $81.52.
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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. 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.