Time Warner Cable Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Time Warner Cable (NYSE:TWC) will unveil its latest earnings on Wednesday, October 31, 2012. Time Warner Cable, together with its subsidiaries, is a cable operator in the United States.

Time Warner Cable Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.41 per share, a rise of 27% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from $1.39 during the last month. Analysts are projecting profit to rise by 20.9% versus last year to $5.66.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of $1.48 per share versus a mean estimate of profit of $1.38 per share.

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Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $12.35 (14.4%), from $85.60 to $97.95. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 23, 2012, when shares rose for 11 straight days, increasing 8.1% (+$5.20) over that span. It saw one of its worst periods between November 17, 2011 and November 28, 2011 when shares fell for seven straight days, dropping 5.2% (-$3.16) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 8.9% in revenue from the year-earlier quarter to $5.38 billion.

A Look Back: In the second quarter, profit rose 7.6% to $452 million ($1.43 a share) from $420 million ($1.24 a share) the year earlier, exceeding analyst expectations. Revenue rose 9.3% to $5.4 billion from $4.94 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 43.9% in the fourth quarter of the last fiscal year and 17.5% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.7% in the third quarter of the last fiscal year, 4% in the fourth quarter of the last fiscal year and 6.4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 17 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.89 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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

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