Time Warner Cable Inc.
) - the second largest cable MSO in the U.S. after
) - faced service disruption when more than 88,000 home-phone
subscribers failed to make or receive calls.
Such service failures mainly occur due to some technical
issues and the engineers from Time Warner Cable are already
looking into the problem. They are confident about restoring back
Time Warner Cable reported mixed financial results for the
fourth quarter of fiscal 2012. The bottom line surpassed the
Zacks Consensus Estimate but the top line missed the same.
However, total revenue increased 9.9% year over year to $5,485
million. The strong performance was mainly attributed to improved
advertising sales, strong high-speed data revenue growth and
successful integration of Insight Communications.
Time Warner Cable exited fiscal 2012 with nearly five million
Residential voice subscribers. The Residential voice service
contributed $527 million in the fourth quarter of fiscal 2012
with an annualized growth of nearly 6.5%.
Therefore, this recent service disruption holds utmost
importance for Time Warner Cable as the home-phone business
contributes a significant portion to company's top line. So, any
loss of voice subscribers may impact TWC's Residential Services
Segment in the upcoming quarter.
Currently, Time Warner Cable has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other companies belonging to the same sector are
Liberty Global Inc.
Rogers Communications Inc.
). Both these companies carry a Zacks Rank #2 (Buy).
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ROGERS COMM CLB (RCI): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
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