The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TW Telecom met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share stayed the same.
Gross margins shrank, operating margins grew, net margins dropped.
TW Telecom logged revenue of $377.9 million. The 13 analysts polled by S&P Capital IQ anticipated revenue of $376.2 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $351.5 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 $0.11. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS of $0.11 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.9%, 50 basis points worse than the prior-year quarter. Operating margin was 15.0%, 110 basis points better than the prior-year quarter. Net margin was 4.6%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $383.7 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.58 billion. The average EPS estimate is $0.68.
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 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 $27.91.
Looking for alternatives to TW Telecom? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add TW Telecom to My Watchlist.