EarthLink Earnings: Everything You Must Know Now

EarthLink Inc. (NASDAQ:ELNK) had a loss 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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

EarthLink Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.07 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Decreased 7.08% to $320 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: EarthLink Inc. reported adjusted EPS loss of $0.07 per share. By that measure, the company beat the mean analyst estimate of $-0.10. It beat the average revenue estimate of $317.2 million.

Quoting Management: “The first quarter of 2013 was one of substantial progress for our company. We opened several new next-generation data centers, completed the majority of our new unique fiber network routes and had our best quarter of sales bookings since 2011,” said EarthLink Chairman and Chief Executive Officer Rolla P. Huff. “We expect this momentum to further accelerate throughout 2013 as we continue to approach the inflection point of sustained positive growth.”

Key Stats (on next page)…

Revenue decreased 3.51% from $331.64 million in the previous quarter. EPS decreased to $-0.07 in the quarter versus EPS of $0.00 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 loss of $0.04 to a loss $0.08. For the current year, the average estimate has moved down from a loss of $0.16 to a loss of $0.33 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)

More Articles About:   , ,  

More from The Cheat Sheet