Consolidated Communications Holdings Earnings: Here’s Why the Stock is Down Now

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. Shares are down 0.84%.

Consolidated Communications Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 200% to $0.27 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Rose 62.67% to $151.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Consolidated Communications Holdings Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.19. It missed the average revenue estimate of $153.37 million.

Quoting Management: “I am pleased with our financial and operating results in the quarter,” said Bob Currey, President and Chief Executive Officer. “The performance was consistent with our expectations and our strategy of delivering cash flow supporting the dividend and investments for growth. Our broadband adds were solid in what is historically a slow quarter and our business and broadband revenues increased to 79% of our total top-line.”

Key Stats (on next page)…

Revenue decreased 3.2% from $156.3 million in the previous quarter. EPS increased 28.57% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.18 to a profit $0.19. For the current year, the average estimate has moved up from a profit of $0.73 to a profit of $0.77 over the last ninety days.

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

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