TIM Beats EPS Estimates by $0.03 as Revenue Slips to $1.36B

TIM (NYSE:TIMB) reported quarterly earnings of $0.46 per share on Monday, beating analysts' consensus estimate of $0.43 by $0.03. Revenue came in at $1.36 billion, slightly below the $1.37 billion consensus. The bottom-line beat, paired with a top-line miss, sets the frame for a quarter that rewarded profitability over growth.

The company posted a net margin of 15.73% and a return on equity of 17.99% for the quarter. In plain words: TIM converted more than 15 cents of every revenue dollar into profit, and shareholders' equity earned nearly 18% over the period.

How did the market react?

Shares of NYSE:TIMB opened at $18.44 on Tuesday, trading up 1.7%. Behind that move sits a mixed balance sheet picture:

• Quick ratio of 0.82 and current ratio of 0.85 — both below 1, meaning short-term liabilities exceed liquid assets.
• Debt-to-equity ratio of 0.55.
• Market cap of $8.82 billion.
• Price-to-earnings ratio of 10.91, with a P/E/G ratio (P/E adjusted for growth) of 1.66.
• Beta of 0.39, indicating the stock moves far less than the broader market.

The 50-day moving average price sits at $18.43, while the 200-day moving average is $21.99 — a gap that signals a sustained downtrend over the past year. The stock's 52-week range runs from a low of $15.94 to a high of $28.22. Translation: Tuesday's open sits barely above its short-term average and well below its long-term one.

What about the dividend?

TIM disclosed a special dividend of $0.2102 per share, payable on Friday, January 29th. The record date is Monday, September 28th, which is also the ex-dividend date (the first day buyers don't qualify for the payment). The company's dividend payout ratio (the share of earnings paid out as dividends) currently stands at 62.13%. In plain words: TIM is returning well over half its earnings to shareholders.

Where do analysts stand?

The research desk has been busy, and the tone is lukewarm:

• Morgan Stanley reissued a "market perform" rating with a $22.00 target on Thursday, August 20th.
• Barclays cut its target from $24.00 to $22.00 and set an "equal weight" rating on Monday, November 2nd.
• Bank of America upgraded TIM from "underperform" to "neutral" on Tuesday, October 13th.
• Weiss Ratings downgraded the stock from "hold (c+)" to "hold (c)" on Friday, October 23rd.
• Wall Street Zen downgraded TIM from "buy" to "hold" on Saturday, August 29th.

Two analysts rate the stock Buy and ten rate it Hold, according to MarketBeat, for an average rating of "Hold" and a consensus price target of $23.98 — roughly 30% above Tuesday's open. Analysts see value, but few are ready to pound the table.

Who is TIM?

TIM SA is a Brazilian telecommunications company providing mobile voice and data services, mobile plans, internet access, and digital services to consumers and businesses. It also offers fixed broadband, including fiber-optic internet, under the TIM brand. The company began operating in Brazil in 1998 and now provides mobile coverage across the country.

The takeaway in one line: a narrow EPS beat, a fat special dividend, and a Hold-rated stock trading far below both its consensus target and its own 200-day average.