Time Warner Cable Inc. Earnings: Exceeds Forecasts with Boost of Profit Rise

S&P 500 (NYSE:SPY) component Time Warner Cable Inc. (NYSE:TWC) reported net income above Wall Street’s expectations for the fourth quarter. Time Warner Cable, together with its subsidiaries, is a cable operator in the United States.

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Time Warner Cable Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the cable company rose to $564 million ($1.75 per share) vs. $392 million ($1.09 per share) in the same quarter a year earlier. This marks a rise of 43.9% from the year earlier quarter.

Revenue: Rose 4% to $4.99 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TWC beat the mean analyst estimate of $1.21 per share. Analysts were expecting revenue of $4.97 billion.

Quoting Management: Time Warner Cable Chief Executive Officer Glenn Britt said: “Time Warner Cable’s 2011 results demonstrate the continued strength of our business amidst rapid change in technology and the consumer marketplace. We have a full slate of strategic and operational initiatives planned for the year ahead, all designed to generate strong cash flow, enable future growth and provide attractive returns to our shareholders.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.7% to $4.91 billion in the third quarter. The figure rose 4.4% in the second quarter from the year earlier and climbed 5% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $1.11 versus a mean estimate of net income of $1.14 per share.

Net income has increased 27.8% year over year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 51.9% from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the first quarter of the next fiscal year is now at $1.20 per share, up from $1.20. For the fiscal year, the average estimate has moved down from $4.56 a share to $4.46 over the last ninety days.

Competitors to Watch: Comcast Corporation (NASDAQ:CMCSA), Cablevision Systems Corp. (NYSE:CVC), Mediacom Communications Corp. (NASDAQ:MCCC), Time Warner Inc. (NYSE:TWX), AT&T Inc. (NYSE:T), DISH Network Corp. (NASDAQ:DISH), Charter Communications, Inc. (NASDAQ:CHTR), Verizon Communications Inc. (NYSE:VZ), DIRECTV (NASDAQ:DTV), and China Cablecom Hldgs. Ltd. (NASDAQ:CABL).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com