What to Expect from TW Telecom

TW Telecom (Nasdaq: TWTC  ) is expected to report Q4 earnings on Feb. 12. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict TW Telecom's revenues will grow 7.0% and EPS will expand 36.4%.

The average estimate for revenue is $376.2 million. On the bottom line, the average EPS estimate is $0.15.

Revenue details
Last quarter, TW Telecom recorded revenue of $368.9 million. GAAP reported sales were 7.1% higher than the prior-year quarter's $344.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.14. GAAP EPS of $0.14 for Q3 were 40% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 57.7%, 40 basis points worse than the prior-year quarter. Operating margin was 15.9%, 220 basis points better than the prior-year quarter. Net margin was 5.7%, 150 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.47 billion. The average EPS estimate is $0.54.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 87 members out of 111 rating the stock outperform, and 24 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give TW Telecom a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TW Telecom is outperform, with an average price target of $26.84.

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