Oppenheimer Lowers TW Telecom Estimates

TW Telecom, Inc. TWTC reported financials “below our estimates/consensus primarily on disconnects from two large customers,” Oppenheimer reports. “TWTC remains a unique nationwide facilities-based emerging communications company,” Oppenheimer writes. “However, the stock will likely trade down tomorrow on concerns about the flow-through impact of customer disconnects, bad debt expense, higher cap-ex and lack of communication.” Oppenheimer said that TWTC trades at a premium 8x EV/EBITDA multiple, adding, “Positively, bookings are strong and the company is leveraged to an improving economy.” Oppenheimer has lowered its 2010/2011 EPS estimates to $0.36/$0.41 from $0.38/$0.50. TW Telecom currently trades at $18.96.