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Tickers in this Article: TWC
Time Warner Cable (NYSE:TWC) announced its results for the most recent quarter on November 5, 2012. Time Warner Cable, together with its subsidiaries, is a cable operator in the United States.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: 5 Tricks Companies Use During Earnings Season

The Numbers: Time Warner Cable managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported $2.60 per share versus the $1.41 per share estimate and revenues of $5.36 billion versus the $5.13 billion estimate. EPS rose 140.7% while revenue climbed 9.2% from the same period last year. Time Warner Cable's revenue has grown during each of the past four quarters on a year-over-year basis. Time Warner Cable's net income for the third quarter was $809 million, a 127.2% increase from last year. Last quarter marked the third in a row of rising net income.

Management Quote: Time Warner Cable Chief Executive Officer Glenn Britt said: "Our third-quarter results were good, with most trends similar to the preceding quarter. Our operating results were driven by continued strong performance in residential high-speed data and business services, an acceleration in high-margin political advertising and the contributions from our Insight systems. During the quarter, we remained focused on investing in growing our business, while at the same time ramping capital returns to our shareholders."

A Look Back: Net income has increased 39% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than twofold from the year-earlier quarter.

The company's cost of sales rose to 46.6% of revenue, just 9.3% from the year-earlier quarter.

Looking Ahead: Over the past 90 days, the average estimate for the fourth quarter has fallen from $1.62 per share to $1.59, indicating that analysts are growing pessisimistic about the company's performance next quarter. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. Over the past three months, the average estimate for the fiscal year has climbed from $5.61 per to share to $5.66.

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