TW Telecom Inc. (TWTC) Monday reported an increase in profit for the fourth quarter, as revenues grew reflecting strong performance at data and internet services segment. However, earnings for the quarter came in short of analysts' estimates, but revenues trumped Street expectations.
The company's revenues for the quarter grew 7.5 percent to $377.9 million from $351.5 million last year. Analysts expected revenues of $376.8 million for the quarter.
Revenue at TW Telecom's data and internet services segment rose 15.2 percent, while the voice services revenue improved 6.1 percent. The network services unit recorded a decline of 5.2 percent.
TW Telecom offers data-networking, IP based virtual private network, internet access services and telephone services to businesses and government.
Customer churn was 0.9 percent, down from 1.0 percent last year. The company had nearly 28,000 customers as of December 31, 2012.
Modified gross margin for the period dropped to 58 percent from 58.5 percent last year.
Littleton, Colorado-based TW Telecom's profit for the fourth quarter improved to $17.3 million or $0.11 per share from $16.4 million or $0.11 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.
TWTC closed Monday's trading at $27.14, down $0.63 or 2.27%, on the Nasdaq. The stock further slipped $0.72 or 2.65% in after hours trade.
by RTT Staff Writer
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