Time Warner Cable Hits a 52-Week High on Robust Earnings


Shares of Time Warner Cable Inc. (TWC), the second largest cable multi service operator (MSO) in the U.S., surged to a new 52-week high of $148.20 on Friday, before closing the session a little lower at $147.84. In the past twelve months, the company’s shares have soared over 33% following positive earnings surprise in the trailing four quarters.

Since Time Warner Cable reported its first-quarter 2014 financial numbers on Apr 24, 2014, the company’s shares have gained nearly 6%. In the first-quarter 2014, Time Warner Cable reported earnings per share of $1.78, breezing past the Zacks Consensus Estimate of $1.68 by 6%. Also, the company has surpassed the Zacks Consensus estimate in the last four quarters, with an average earnings beat of 4.2%.

In the first-quarter 2014, Time Warner Cable significantly narrowed its residential video customer loss to 34,000 from 217,000 in the last quarter. Also, this figure marks the lowest loss in the last five years. The company also witnessed considerable subscriber addition for its broadband and digital phone services.

Recently, Time Warner Cable and global WiFi service provider Boingo Wireless, Inc. (WIFI) have jointly announced a roaming access agreement. Per the agreement, Time Warner Cable customers can now access Boingo’s WiFi services in over 100 superior Boingo locations. Though Time Warner Cable customers will benefit from this pact at only 100 locations, we believe this will serve as the platform to expand Internet services on a large scale in the near future. We believe implementation of such growth strategies may act as tailwinds for the company, moving forward.

Time Warner Cable currently holds a Zacks Rank #3 (Hold).

Other stocks to Consider

Other better-ranked stocks worth considering in this sector are Comcast Corporation (CMCSA) and Rogers Communications Inc. (RCI). Both these stocks hold a Zacks Rank #2 (Buy).

Read the Full Research Report on RCI
Read the Full Research Report on CMCSA
Read the Full Research Report on TWC
Read the Full Research Report on WIFI

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