Time Warner Cable
The 10-second takeaway
For the quarter ended March 31 (Q1), Time Warner Cable met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Margins grew across the board.
Time Warner Cable logged revenue of $5.13 billion. The 22 analysts polled by S&P Capital IQ predicted sales of $5.12 billion on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $4.83 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.30. The 17 earnings estimates compiled by S&P Capital IQ forecast $1.22 per share on the same basis. GAAP EPS of $1.20 for Q1 were 30% higher than the prior-year quarter's $0.92 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 53.2%, 30 basis points better than the prior-year quarter. Operating margin was 21.2%, 90 basis points better than the prior-year quarter. Net margin was 7.4%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.28 billion. On the bottom line, the average EPS estimate is $1.41.
Next year's average estimate for revenue is $21.01 billion. The average EPS estimate is $5.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 188 members out of 220 rating the stock outperform, and 32 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 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 $86.90.
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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.