Communication Stocks Active Among Investors After Earnings

Sprint Nextel Corporation (NYSE:S) reported its results for the fourth quarter. Loss widened to $1.3 billion (43 cents per diluted share) from $929 million (loss of 31 cents per share) in the same quarter a year earlier. Revenue rose 5.1% to $8.72 billion from the year earlier quarter. Sprint Nextel Corporation fell short of the mean analyst estimate of a loss of 38 cents per share. Analysts were expecting revenue of $8.68 billion.

“Our strong fourth quarter performance illustrates the power of matching iconic devices like the iPhone with our simple, unlimited plans and industry-leading customer experience,” said Dan Hesse, Sprint CEO. “During the past year, Sprint added more than five million net new customers and grew wireless service revenue by more than five percent, including 17 percent for the Sprint platform. This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out.”

Competitors to Watch: AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Clearwire Corporation (NASDAQ:CLWR), MetroPCS Communications, Inc. (NYSE:PCS), Leap Wireless Intl., Inc. (NASDAQ:LEAP), NTELOS Holdings Corp. (NASDAQ:NTLS), United States Cellular Corp. (NYSE:USM), Telephone & Data Systems, Inc. (NYSE:TDS), and CenturyLink, Inc. (NYSE:CTL).

Level three Communications, Inc. (NASDAQ:LVLT) reported its results for the fourth quarter. Loss narrowed to $163 million (80 cents per diluted share) from $207 million (loss of $1.75 per share) in the same quarter a year earlier. Revenue rose to $1.58 billion from the year earlier quarter. Level three Communications, Inc. reported an adjusted net loss of 62 cents per share. By that measure, the company beat the mean analyst estimate of a loss of $1.02 per share. It fell short of the average revenue estimate of $1.63 billion.

“The company finished 2011 on a strong note, with Level three growing both Core Network Services revenue and Adjusted EBITDA and stable performance from the Global Crossing standalone business,” said James Crowe, CEO of Level three. “In particular, GC Impsat’s results showed strong quarterly and year-over-year growth. We are pleased with the progress we made over the course of the year, significantly expanding the scope of our business through the acquisition of Global Crossing, reducing leverage and positioning the company for the future.”

Competitors to Watch: Global Crossing Ltd. (NASDAQ:GLBC), AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), tw telecom inc. (NASDAQ:TWTC),  AboveNet, Inc. (NYSE:ABVT), PAETEC Holding Corp. (NASDAQ:PAET), Xfone, Inc. (AMEX:XFN), Tata Communications Ltd. (NYSE:TCL), Sprint (NYSE:S) and Cincinnati Bell Inc. (NYSE:CBB).

tw telecom inc. (NASDAQ:TWTC) reported its results for the fourth quarter. Net income for tw telecom inc. fell to $16.4 million (11 cents per share) vs. $17.5 million (11 cents per share) a year earlier. This is a decline of 6.3% from the year earlier quarter. Revenue rose 8.2% to $351.5 million from the year earlier quarter. tw telecom inc. fell in line with the mean analyst estimate of 11 cents per share. Analysts were expecting revenue of $349.9 million.

“We delivered another strong annual performance, as we significantly expanded our revenue growth rate, maintained an impressive Modified EBITDA margin and produced continued strong cash flow,” said Larissa Herda, tw telecom’s Chairman, CEO and President. “At the same time we strategically invested in the business to advance our network capabilities, deliver new product features and reach more customer locations.”

Competitors to Watch: Level three Communications, Inc. (NASDAQ:LVLT), AT&T Inc. (NYSE:T), CenturyLink, Inc. (NYSE:CTL), Cbeyond, Inc. (NASDAQ:CBEY), AboveNet, Inc. (NYSE:ABVT), Verizon Communications Inc. (NYSE:VZ), PAETEC Holding Corp. (NASDAQ:PAET), Cincinnati Bell Inc. (NYSE:CBB), XO Holdings Inc. (XOHO), and Fusion Telecommunications Int’l, Inc. (FSNN).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com