Time Warner Cable Inc., the second-largest cable-television operator, reported Monday third-quarter earnings that trailed estimates after losing more video subscribers than analysts projected.
The company’s Akron-based unit is its third-largest division. The Northeast Ohio/Western Pennsylvania division has 2,500 employees, including 360 at the headquarters and operations in Canal Place.
Net income rose to $808 million, or $2.60 a share, from $356 million, or $1.08 a share, a year earlier, the New York-based company said. Excluding one-time items, earnings per share were $1.41, missing the $1.43 average analyst estimate compiled by Bloomberg News.
Time Warner Cable lost 140,000 video subscribers, more than the 128,000 that analysts had estimated.
Time Warner Cable has become “top-heavy” after shares gained more than 54 percent this year, said Todd Mitchell, an analyst at Brean Capital LLC in New York, in an interview before the results were released.
“You haven’t seen as strong operating results there in a while,” Mitchell said. “People are looking for signs they’ll maintain capital returns at this year’s level next year, and until they give a definitive answer, I don’t really see an upside.”
Sales rose 9.2 percent to $5.36 billion, missing the average estimate of $5.39 billion.
Time Warner Cable repurchased $500 million worth of shares in the period, up from last quarter’s $440 million. Investors are curious what management will do with the $1.1 billion that Time Warner Cable received from Verizon Wireless for its wireless spectrum, a deal approved by regulators in August, said James Ratcliffe, an analyst at Barclays Plc.