Cincinnati Bell Earnings: Here’s Why Investors Don’t Like These Results

Cincinnati Bell Inc. (NYSE:CBB) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 10.17%.

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Cincinnati Bell Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 83.33% to $0.01 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Decreased 10.23% to $325.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cincinnati Bell Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It beat the average revenue estimate of $305.75 million.

Quoting Management: “We are very pleased with our performance to start the year, particularly the strong Adjusted EBITDA generated during the quarter,” said Ted Torbeck, president and chief executive officer. “Fioptics revenue growth of 52 percent from the first quarter of 2012 is impressive and in line with our expectations for this superior product suite. As we generate growth from our fiber services, we remain intently focused on customer service, our operations initiatives and maximizing profitability from our legacy products.”

Key Stats (on next page)…

Revenue decreased 13.08% from $374.7 million in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.01 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.06 to a profit $0.01. For the current year, the average estimate has moved down from a profit of $0.25 to a profit of $0.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)