The 10-second takeaway
For the quarter ended March 31 (Q1), TW Telecom met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, while GAAP earnings per share increased significantly.
Margins expanded across the board.
TW Telecom recorded revenue of $358.9 million. The 11 analysts polled by S&P Capital IQ expected revenue of $357.7 million on the same basis. 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 came in at $0.13. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. 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.
For the 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.
Next quarter's average estimate for revenue is $364.7 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $0.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 84 members rating the stock outperform and 25 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 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. 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.