Consolidated Communications Holdings Inc. (NASDAQ:CNSL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Consolidated Communications Holdings Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 183.33% to $0.17 in the quarter versus EPS of $0.06 in the year-earlier quarter.
Revenue: Rose 67.42% to $156.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Consolidated Communications Holdings Inc. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.13. It missed the average revenue estimate of $157.01 million.
Quoting Management: “We had an outstanding quarter with strong financial results and continued operating and integration success,” said Bob Currey, President and Chief Executive Officer. “Our strategy is working. The business is achieving solid growth with more diversified revenues and cash flows. We are delivering cash flow supporting the dividend and making success-based capital investments to sustain future growth.”
Key Stats (on next page)…
Revenue decreased 2.36% from $160.08 million in the previous quarter. EPS decreased 5.56% from $0.18 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 $0.18 to a profit $0.13. For the current year, the average estimate has moved down from a profit of $0.75 to a profit of $0.6 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)