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. Non-GAAP earnings per share grew. GAAP earnings per share expanded.
Margins dropped across the board.
Time Warner Cable reported revenue of $5.48 billion. The 25 analysts polled by S&P Capital IQ predicted a top line of $5.49 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $5.13 billion.
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 $1.41. The 23 earnings estimates compiled by S&P Capital IQ predicted $1.37 per share. Non-GAAP EPS of $1.41 for Q1 were 8.5% higher than the prior-year quarter's $1.30 per share. GAAP EPS of $1.34 for Q1 were 12% higher than the prior-year quarter's $1.20 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 51.9%, 130 basis points worse than the prior-year quarter. Operating margin was 19.9%, 130 basis points worse than the prior-year quarter. Net margin was 7.3%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.59 billion. On the bottom line, the average EPS estimate is $1.69.
Next year's average estimate for revenue is $22.25 billion. The average EPS estimate is $6.56.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 195 members out of 237 rating the stock outperform, and 42 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Time Warner Cable a green thumbs-up, and seven 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 $101.42.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Time Warner Cable on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Time Warner Cable to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.