The New York City-based cable provider reported that it added 32,000 residential video customers last year, which was its first addition in nine years.
Additionally, Time Warner added 1 million high-speed data subscribers, the company said on Monday.
"Time Warner Cable's stellar 2015 residential subscriber growth is a testament to the efforts of our entire team," CEO Rob Marcus said in a statement. "Ordinarily we wouldn't announce subscriber results until our earnings release, but given our results, I couldn't wait to thank the team for its outstanding performance."
Time Warner Cable stock closed down by 1.28% to $183.08 on Monday, after weak economic data in China caused a global selloff in stocks. The Dow Jones Industrial Average closed down by 276 points today.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TIME WARNER CABLE INC as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $1,500.00 million or 3.59% when compared to the same quarter last year. Despite an increase in cash flow, TIME WARNER CABLE INC's average is still marginally south of the industry average growth rate of 8.97%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Media industry and the overall market, TIME WARNER CABLE INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- TIME WARNER CABLE INC's earnings per share declined by 13.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TIME WARNER CABLE INC increased its bottom line by earning $7.17 versus $6.71 in the prior year. For the next year, the market is expecting a contraction of 7.9% in earnings ($6.60 versus $7.17).
- You can view the full analysis from the report here: TWC