Morgan Stanley Previews TW Telecom's 1Q14 Results

In a report published Tuesday, Morgan Stanley analyst Simon Flannery previewed

first quarter 2014 results. With the ongoing 27 market expansion project, Flannery noted that market expansion won't contribute to revenues until 2015. The analyst remarked that earlier investments are starting to pay off with stronger bookings in 2013 translating into 2014 revenues. Morgan Stanley commented, “Thus far into 1Q14 earnings, we have seen the continued divergence of legacy and secular enterprise services. While providers like Level 3 continue to out- perform expectations on stronger demand for high bandwidth services, the Bells roll forward their enterprise declines on the back of legacy services. We see this trend as a positive for TWTC and turn our focus to the timing of its top-line reacceleration during the year.” Flannery's revenue estimates of $407 million is in-line with consensus. Morgan Stanley's adjusted EBITDA of $140.2 million, representing margins of 34.7 percent, is above consensus estimates of 33.8 percent in margins. TW Telecom is scheduled to report earnings on May 7, after the market close. The conference call will be held on May 8 at 11:00 AM. Investors and the general public can access the call at (866)952-1906 and enter the password: TWTC50814. Shares of TW Telecom closed at $31.39 on Monday and are currently trading at $31.59, up 0.64 percent.