Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Will Time Warner Cable Beat Earnings?

Time Warner Cable Inc. (TWC - Analyst Report) – the second-largest cable MSO in the U.S. – is set to release its first-quarter 2013 results before the opening bell on Apr 25, 2013.

In the last quarter, the company delivered a 1.95% earnings surprise. Let’s see how things are shaping up for this announcement.

Factors to be Considered this Quarter

Continuous deployment of the DOCSIS 3.0 technology across its footprints coupled with rate hikes and launch of popular sports channels in the U.S. market will drive Time Warner Cable’s top-line growth, while moving ahead. Moreover, signing deals with different sports majors and launching different devices will further act as tailwinds for the company.  

On the downside, persistent loss of video subscribers remains the primary cause of concern for Time Warner Cable as customers are opting for cheaper video streaming service providers like Netflix, Hulu.Com and YouTube.

Earnings Whispers

Our proven model does not conclusively show that Time Warner Cable is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Expected Surprise Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: This is because the Most Accurate estimate is $1.34, below the Zacks Consensus Estimate of $1.37. This leads to an ESP of -2.19% for Time Warner Cable.

Zacks Rank #3 (Hold): Time Warner Cable’s Zacks Rank #3, decreases the predictive power of ESP.

We caution investors against the stock going into the earnings announcement, as a Zacks earnings ESP of -2.19% combined with a Zacks Rank #3 lowers the possibility of an earnings surprise.

Other Stocks to Consider

Here are some other companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

  • AT&T (T - Analyst Report) has an Earnings ESP of +1.56% and carries a Zacks Rank #2 (Buy)
  • Comcast Corporation (CMCSA - Analyst Report) has an Earnings ESP of +4.08% and carries a Zacks Rank #3 (Hold)
  • Sprint Nextel (S - Analyst Report) has an Earnings ESP of +20.00% and carries a Zacks Rank #3 (Hold)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%