Cogent Communications Group Earnings: Here’s Why Investors are Happy Now

Cogent Communications Group Inc. (NASDAQ:CCOI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.4%.

Cogent Communications Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.03 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 10.25% to $85.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cogent Communications Group Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $86.56 million.

Key Stats (on next page)…

Revenue increased 1.48% from $84.55 million in the previous quarter. EPS increased 200% from $0.01 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.07 and has not changed. For the current year, the average estimate is a profit of $0.22, which is the same with that ninety days ago.

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